South Africa: Amendments to income tax law to align with new accounting standard for insurance contracts
KPMG reports examine how income tax amendments affect accounting for the insurance industry
KPMG reports examine how income tax amendments affect accounting for insurance industry
Amendments to section 28 of the Income Tax Act (the Act) were enacted in the 2022 Taxation Laws Amendment Act to align with IFRS 17 Insurance Contracts (IFRS 17)—the new accounting standard for insurance contracts effective for reporting periods commencing on or after 1 January 2023.
The amendments apply for years of assessment commencing on or after 1 January 2023 and mitigate potential unfavorable tax impacts emanating from the accounting changes as a result of insurers moving from IFRS 4 to IFRS 17.
Read a September 2023 report [PDF 708 KB] prepared by the KPMG member firm in South Africa that describes income tax related challenges taxpayers have faced in implementing IFRS 17.
Also read a September 2023 report [PDF 324 KB] prepared by the KPMG member firm in South Africa that discusses the implications of the income tax amendments for non-life insurers.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.