South Africa - Tax Alerts

We are pleased to introduce our latest Tax Alerts edition. Our bi-weekly editions are designed to keep you informed on recent key tax developments in South Africa. Click "read more" for additional details on a specific topic.?

SARS Newsletters

Tax Exempt Institutions Connect Newsletter Special Edition (November 2024)

?This issue provides an update on the El1 application form enhancements, related details and a link to the guide on how to complete the El1 application form.?Read more

SARS External Guides

?How to Complete the El1 Application Form [GEN-AE-01-G01]

SARS developed a guide and annexures to assist organisations applying for Income Tax Exemption with the completion of the EI1 form. Read more

VAT404 Guide for Vendors (Issue 15)

Updates to the VAT 404 Guide for Vendors. Read more

Comprehensive Guide to the Income Tax Return for Trusts [IT-AE-36-G02]

Updates to the external guide in respect of beneficial ownership information.?Read more

Legal Counsel Publications

Average exchange rates

The average exchange rates have been amended. Read more

Legislation

Government Gazette No. 51884

The Global Minimum Tax Administration Act No.47 of 2024 have been promulgated on 9 January 2025. Read more

Government Gazette No. 51830

The Global Minimum Tax Act No.46 of 2024 have been promulgated on 24 December 2024. Read more

Government Gazette No.51829

The Rates and Monetary Amounts Amendment Act No.45 of 2024? have been promulgated on 24 December 2024. Read more

Government Gazette No.51828

The Revenue Laws Second Amendment Act No.44 of 2024 have been promulgated on 24 December 2024. Read more

Government Gazette No.51827

The Tax Administration Laws Amendment Act No.43 of 2024 have been promulgated on 24 December 2024. Read more

Government Gazette No.51826

The Taxation Laws Amendment Act No.42 of 2024 have been promulgated on 24 December 2024. Read more

Case Law

CSARS v Medtronic International Trading S.A.R.L (CCT 79/23) [2024] ZACC 26 (20 December 2024)

This is an application for leave to appeal brought by the CSARS against a judgment of the Supreme Court of Appeal. At issue is whether a taxpayer, who – in terms of section 230 of the Tax Administration Act (TAA) – that has concluded a voluntary disclosure agreement (VDA) with SARS, can seek remission of interest in terms of section 39(7) of the Value - Added Tax Act (VAT Act) where that taxpayer has agreed to pay the interest in terms of the VDA. In a unanimous judgment, it was held that,? on a proper interpretation, the TAA does not permit remission of interest post conclusion of a VDA.? Interest is an integral component of a VDA.? Remitting it post conclusion of the VDA would undo the agreement itself. Read more

X and Another v CSARS (52/2023) [2024] ZATC 12 (2 December 2024)

The applicants sought a declaratory order that an objection which they filed with SARS on 14 August 2023 and which was invalidated by SARS due to non-compliance with rule 7(2)(b) to the Tax Administration Act, is valid. The taxpayers contend that the Second Objection meets the requirements of rule 7(2)(b). The application failed and the applicants were ordered to pay the SARS' costs, including the costs of two councils so employed. Read more

ASPASA NPC and Others v CSARS (2023/099811) [2024] ZAGPPHC 1286 (6 December 2024)

ASPASA NPC and several aggregate companies (applicants) sought a declaratory order regarding the interpretation of the term "bulk" in the Mineral and Petroleum Resources Royalty Act, 2008, specifically in relation to the calculation of royalties for aggregates. The court had to decide whether "bulk" referred to the condition of aggregates at the muck pile (blasted rock at the quarry face) or at any stage of beneficiation. The court ruled in favour of the applicants, declaring that "bulk" refers to the condition of aggregates at the muck pile prior to processing. This interpretation prevents the penalisation of beneficiation and ensures that royalties are calculated based on the initial condition of the aggregates. The court also addressed procedural issues, including jurisdiction and the applicants' standing, ultimately granting the declaratory relief and ordering SARS to pay the costs of the application. Read more

JBSA Props (Pty) Ltd and Another v CSARS and Others (5009/2023P) [2025] ZAKZPHC 3 (10 January 2025)

JBSA Props (Pty) Ltd and Wilmeg Investments (Pty) Ltd (applicants) sought an interdict against SARS to prevent SARS from pursuing VAT debts incurred during Wilmeg's business rescue. The applicants argued that the business rescue plan extinguished these debts. SARS, however, did not attend the creditors' meeting or agree to the plan. The court ruled that, under the Companies Act, post-commencement debts could only be compromised if the creditor explicitly agreed. Since SARS did not accede to the compromise, the court found in favour of SARS, dismissing the application and ordering the applicants to pay the costs. Read more|

Thank you for joining us for this edition of our Forvis Mazars Tax Alerts. Stay tuned for future updates! If you'd like to discuss any of the topics covered, please feel free to contact our experts.