2026 Draft Tax Bills: CFCs, dividend stripping, interest deductions, VAT on leasehold improvements

<p>South Africa’s National Treasury published the 2026 draft tax law amendments for public comment on 30 July 2026. Although proposals are technical, tax practitioners and CFOs need to assess whether their businesses or clients are affected.</p><p><br></p><p>In this episode I analyse four key proposals: the interaction between the controlled foreign company (CFC) rules and the domestic treasury management company (DTMC) regime for translating CFC income, the clarification of the dividend stripping anti-avoidance rules, the withdrawal of the alignment between the interest deduction limitations in sections 23M and 23N of the Income Tax Act, and the proposed VAT changes for leasehold improvements.</p><p><br></p><p>Contact me at <a href="mailto:pieter@pvdz.co.za">pieter@pvdz.co.za</a> for feedback or tax advice. More South African tax resources: <a href="https://tax.pvdz.co.za/">https://tax.pvdz.co.za</a></p><p>.</p>