Proposed high tax exemption will negatively impact SA multinationals that have assessed group losses
Proposed tax amendments to SA’s controlled foreign company (CFC) rules will adversely impact South African multinationals with foreign subsidiaries that have assessed tax losses, warns PwC International Tax. The amendments which are intended to provide benefits for CFS that are in a loss making position are misleading and fundamentally flawed. “The proposed amendments will make it more difficult for local multinationals to compete with other corporations abroad amidst the current economic uncertainty,” says Cor Kraamwinkel, a tax partner in PwC’s International Tax division.