A government report prepared for the 2000 budget says that billions of pounds sterling are lost annually to the informal economy. Breach of certain conditions requires full repayment of benefits. A new 15 percent tax rate is introduced on the first ZAR100,000 for small business corporations. Personal tax brackets are raised and the marginal rate is lowered. The maximum tax on trusts is reduced to 42 percent.
Tax authorities are no longer responsible for registration and regulation of venture capital funds.
The tax holiday for new industries in depressed areas is extended two years. The domestic corporate dividend-distribution tax doubles to 22 percent. Latvia 's budget includes a 25 percent withholding on all income to non-resident individuals, including artists and athletes, and a 25 percent tax on individuals' interest income from foreign banks. New rules for companies engaged in the exploration and exploitation of natural resources include new rates and rules for calculating depreciation of certain assets used in such activities and longer loss-carryforward periods. Excise taxes are increased on alcoholic beverages and introduced on non-alcoholic beverages such as coffee and mineral water.