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

SARS' Tax Practitioner Connect Issue 58 (November 2024)

This issue provides more details about the release of new guides for Recognised Controlling Bodies (RCBs) and tax practitioners, and information about third-party data submissions for Tax Exempt Institutions. The newsletter also contains information about the new Donations Tax declaration form, and new service channel offerings for Trust registration. Read more

VAT Connect Issue 18 (November 2024)

This issue provides updates on the publication and promulgation of recent amendments, commentary on the Capitec Bank ConCourt case, guidance on the application of BGR 16 (Issue 3) to address uncertainties regarding when a vendor borrows funds from various different sources, each with their own finance rate or charge attached to it, as well as a summary of recently published VAT rulings, FAQs and external guides. Read more

SARS Monthly Tax Digest (November 2024)

This SARS Tax Digest provides guidance on how to make payments to SARS to settle debts owing to SARS, the submission deadline for trusts and provisional taxpayers, keeping of supporting documents and updated taxpayer details. Read more

SARS Budget

Medium Term Budget Policy Speech by the minister of Finance (30 October 2024)

The full speech presented by the Minister of Finance, Enoch Godongwana. The speech focuses on the tabling of tax and revenue amendments bills, the revised 2024/25 fiscal framework, 2024/25 adjusted estimates of national expenditure and the medium-term budget policy statement. Read more

SARS External Guides

IT-AE-47-G01 - How to register for the use of the SARS MobiApp

The SARS MobiApp is a digital service platform that allows you to engage with SARS from anywhere and at any time. This platform also allows you to interact and transact conveniently by making use of your smart phone. This guide will demonstrate how you can register for Personal Income Tax (PIT) or register for making use of the SARS MobiApp in your tax compliance responsibilities.?Read more

GEN-DNT-01-G01 - Manage donations tax

The purpose of this external guide is to provide guidelines regarding the completion of the Donations Tax declaration form (IT144) received from the taxpayer. Read more

Public Notices?

Public Notice No. 5533: Additional considerations in terms of section 80(2) of the Tax Administration Act, 2011 (Act No. 28 of 2011) in respect of which an application for a binding private ruling or a binding class ruling may be rejected

?This Public Notice deals with additional considerations in terms of section 80(2) in respect of which an application for a binding private ruling or a binding class ruling may be rejected - GG 51526 Notice 5533

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SARS Rulings

Binding Private Ruling 413: Application of proviso to section 8EA(3)

Binding Private Ruling 413, issued 18 November 2024, determined that the proviso to section 8EA(3) will apply where equity shares in an operating company acquired by a person through the direct or direct application of preference share funding are no longer directly or indirectly held by that person.?Read more

Bindings Class Ruling 091: Award of listed shares under share incentive schemes

Binding Class Ruling, issued 20 November 2024, determines income tax and securities transfer tax consequences for employer companies and their employees participating in proposed share incentive schemes. Read more

Rule Amendments?

Customs and Excise rule amendments

Insertion of rules under sections 21, 60, and 120 of the Customs and Excise Act (1964), relating to the storage of imported bonded fuel goods in special customs and excise storage warehouses (DAR259). Read more

International Treaties & Agreements

Kuwait Protocol

Protocol amending the Agreement between the Government of the Republic of South Africa and the Government of the State of Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. Date of entry into force is 2 October 2024. Read more

New Developments

Customs - Goods declaration

Clearance declaration references were substituted to goods declarations to align with the World Customs Organisation (WCO) terminology. The Supporting Document Codes list annexure (SC-CF-55-A11) has been updated. Declarants must use the codes when uploading the requested supporting documents to the Customs clearance declaration (CCD) case.

The certification of origin requirement for export declarations, previously published in the clearance declaration policy, is documented in the Administration of Trade Agreement (SC-RO-01) policy.

Read more to view the updated documents. Read more

CSARS v Diageo SA (Pty) Ltd (1063/2023) [2024] ZASCA 158 (15 November 2024)

Diageo, a subsidiary of the British multinational Diageo Plc, produces a range of liqueurs marketed under the name ‘Cape Velvet’. The dispute arose due to the classification of one such product, Cape Velvet Cream Original. The Commissioner had classified it as liqueurs with added alcoholic ingredients. Diageo challenged this classification, contending that the product should had a wine spirit base with ‘non-alcoholic ingredients’ added, and should be classified as such.

The court found in favour of SARS, confirming that both the flavouring and the vanilla are components of the product and, therefore, are ingredients that are added to the wine base of the product. 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.