National Treasury aims to introduce legislation by 2024 to enact a 15% minimum corporate tax on large companies, part of a global agreement to overhaul international tax rules., Treasury said it would publish a draft position on the minimum tax rate for public comment this year. South Africa was one of 136 countries that signed a deal in October 2021 to enact a global minimum corporate tax of 15% of companies with annual revenues above €750 million – about R14.
The 2021 agreement has two pillars. The first is an ambitious plan to overhaul tax rules so that digital corporations pay taxes based on where they make their profits rather than where they are headquartered. The second pillar is the introduction of a global minimum tax rate to stop multinational countries from using tax havens and low-cost jurisdictions to pay less tax.