South Africa has the largest and most developed economy in
sub-Saharan Africa, and boasts well-regulated, sophisticated and
relatively liquid financial markets supported by a progressive and
robust common law-based legal system. The capital markets in South
Africa are well established and the regulation of its securities
exchanges was rated as among the best in the world in the 2011/2012
World Economic Forum's Global Competitiveness Report.
Tax developments
South African tax law has undergone several significant changes
of late. In addition to amendments to the Income Tax Act No. 58 of
1962 concerning interest withholding taxes and the tax consequences
of third-party backed shares, the Tax Administration Act 2011
(effective from 1 October 2012) has overhauled the entire tax
administration system by consolidating the administrative elements
relating to tax into a single piece of legislation. The Tax
Administration Act streamlines the tax collection process,
