In the 2011 Budget Speech, the South African Finance Minister, Pravin Gordhan, announced that a proposed withholding tax was to be implemented from April 2012 at a rate of 15% on all gambling winnings above R25 000.
Then, in the 2012 Budget Speech, the Minister announced that significant changes will be made to the current taxation regime applicable to the gambling industry; that a national tax based on gross gambling revenue would be implemented from April 2013; and that the plans to introduce the withholding tax on gambling winnings would be scrapped. The reason for this about-turn is unknown and whether or not the proposals made in 2012 are going to be implemented this year waits to be seen.
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