The first draft of the Taxation Laws Amendment Bill, 2013 (the
"Bill") was published by National Treasury on 4 July
2013. Although the Bill proposes a number of interesting and
complex issues, of particular interest is the amendment to the exit
charge on interests in immovable property, especially in light of
the recent amendments to the double tax treaty between South Africa
and Mauritius, concluded on 17 May 2013.
South Africa taxes persons that are resident in South Africa on
their worldwide income. This includes capital gains tax on
the disposal of certain assets. Non-residents are subject to
tax in South Africa on income from a source within South
Africa.
Where a person ceases to be a resident, such event is a deemed
disposal event in terms of which the person is deemed to have
disposed of all its assets for market value on the day before
ceasing to be a resident, and immediately reacquired the same
assets at the same market value. The difference between
