Below, please find issue 106 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.
legislation and draft legistation
- The South African Revenue Service ("SARS")
and National Treasury published the following draft documents for
public comment:
- Draft Rates and Monetary Amounts and Amendment of Revenue Laws
Bill
- Find a copy here.
- Draft Taxation Laws Amendment Bill
- Find a copy here.
- Draft Explanatory Memorandum on the 2023 draft TLAB
- Find a copy here.
- Draft Tax Administration Laws Amendment Bill
- Find a copy here.
- Draft Memorandum on the Objects of the 2023 draft TALAB for
public comment and introduction in Parliament
- Find a copy here.
- Draft amendments to Regulations in terms of paragraph (d) of
the definition of "Research and Development" in section
11D(1) of the Income Tax Act, 1962, on additional criteria for
multisource pharmaceutical products
- Find a copy here.
- Draft amendments to Regulations in terms of paragraph (e) of
the definition of "Research and Development" in section
11D(1) of the Income Tax Act, 1962, on criteria for clinical trials
in respect of deduction for research and development
- Find a copy here.
- Draft amendments to Regulations on domestic reverse charge
relating to valuable metal in terms of 74(2) of the Value-Added Tax
Act, 1991 (the VAT Act)
- Find a copy here.
- Draft Explanatory Memorandum on domestic reverse charge
relating to valuable metal in terms of 74(2) of the VAT Act
- Find a copy here.
- Draft amendments on Carbon Offsets Regulations
- Find a copy here.
- Draft Rates and Monetary Amounts and Amendment of Revenue Laws
Bill
- Draft Tax Bills and Regulations, 2023 | media
statement
- The joint media statement announcing the publication of the Draft Tax Bills and Regulations, 2023 for public comment, providing an overview of the abovementioned documents, and outlining the process to follow to submit comments can be found here.
- The due date for comments on the above drafts is close of business on 31 August 2023.
customs and excise
- International Trade Administration Act, 2002 | Policy
Directive and Guidelines
- On 31 July 2023, the Minister of Trade, Industry and
Competition published a government notice extending the application
of the policy directive on the exportation of ferrous and
non-ferrous waste and scrap metal for a further period of four
years, from 31 July 2023 to 31 July 2027.
- Find a copy of the notice here.
- The Minister of Trade, Industry and Competition published a
government notice extending the application of the price preference
system on the exportation of ferrous and non-ferrous waste and
scrap, and the application of the Export Control Guidelines on the
exportation of ferrous and nonferrous waste and scrap, in
accordance with the Trade Policy Directive, until 31 July 2027.
- Find a copy of the notice here.
- On 31 July 2023, the Minister of Trade, Industry and
Competition published a government notice extending the application
of the policy directive on the exportation of ferrous and
non-ferrous waste and scrap metal for a further period of four
years, from 31 July 2023 to 31 July 2027.
- International Trade Administration Act, 2002 | Trade
Investigations
- On 5 August 2021, the International Trade Administration Commission of South Africa ("ITAC") initiated an anti-dumping investigation on frozen bone-in portions of fowls of the species gallus domesticus ("the subject product") originating in or imported from Brazil, Denmark, Ireland, Poland and Spain.
- ITAC made a final determination that the subject product originating in or imported from the subject countries was being dumped into the Southern African Customs Union ("SACU") market, causing material injury to the SACU industry.
- On 2 August 2023, a notice was published in the Government Gazette regarding the imposition of the final anti-dumping duties on the subject product.
- Find a copy of the notice here.
- Customs and Excise Act, 1964 | Tariff
Amendment
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 2, by the insertion of
anti-dumping items under 201.02, in order to impose anti-dumping
duties against the alleged dumping of frozen bone-in portions of
fowls of the species Gallus Domesticus classifiable in tariff
subheading 0207.14.9, originating in or imported from Brazil,
Denmark, Ireland, Poland and Spain – ITAC Report 695.
- Find a copy of the notice here.
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 1, by the substitution of
tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99,
to reduce the rate of customs duty on sugar from 195,28c/kg to free
of duty in terms of the existing variable tariff formula –
ITAC Minute 03/2023.
- Find a copy of the notice here.
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 2, by the insertion of
anti-dumping items under 201.02, in order to impose anti-dumping
duties against the alleged dumping of frozen bone-in portions of
fowls of the species Gallus Domesticus classifiable in tariff
subheading 0207.14.9, originating in or imported from Brazil,
Denmark, Ireland, Poland and Spain – ITAC Report 695.
- Customs and Excise Act, 1964 | Tariff
Amendment
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 2, by the insertion of
anti-dumping items under 201.02, in order to impose anti-dumping
duties against the alleged dumping of frozen bone-in portions of
fowls of the species Gallus Domesticus classifiable in tariff
subheading 0207.14.9, originating in or imported from Brazil,
Denmark, Ireland, Poland and Spain – ITAC Report 695.
- Find a copy of the notice here.
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 1, by the substitution of
tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99,
to reduce the rate of customs duty on sugar from 195,28c/kg to free
of duty in terms of the existing variable tariff formula –
ITAC Minute 03/2023.
- Find a copy of the notice here.
- SARS published a tariff amendment notice relating to the
amendment to Part 1 of Schedule No. 2, by the insertion of
anti-dumping items under 201.02, in order to impose anti-dumping
duties against the alleged dumping of frozen bone-in portions of
fowls of the species Gallus Domesticus classifiable in tariff
subheading 0207.14.9, originating in or imported from Brazil,
Denmark, Ireland, Poland and Spain – ITAC Report 695.
- Customs and Excise Act, 1964 | Trade Statistics for
June 2023
- SARS released a statement noting that South Africa recorded a preliminary trade balance deficit of ZAR3.5-billion in June 2023. This deficit is attributable to exports of ZAR167.6-billion and imports of ZAR171.1-billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia ("BELN").
- The trade data excluding BELN for June 2023 recorded a preliminary trade balance deficit of ZAR14.7-billion, with export flows at ZAR151.6-billion and import flows at ZAR166.3-billion.
- Find a copy of the media release here.
- Customs and Excise Act, 1964 | Prohibited and
Restricted goods
- SARS updated the Prohibited and Restricted Imports and Exports list.
- Tariff heading 3825.10 now requires an import permit from ITAC.
- Find a copy of the updated list here.
- Customs and Excise Act, 1964 | International Treaties
and Agreements
- The Customs Mutual Administrative Assistance Agreement between South Africa and Uganda will enter into force on 1 September 2023.
- Find a copy of the agreement here.
- Customs and Excise Act, 1964 | Certificate of
Origin
- SARS issued a letter to external stakeholders regarding the gradual implementation of the 13 blocks Southern African Development Community certificate of origin ("SCO") and transitional arrangements for the smooth phasing-out of the 12 blocks SCO. During August 2023, no trader will be returned or refused to process the 12 blocks SCO, however, as from 1 September 2023 only traders issued with 13 blocks SCO would be certified except for identified retailers.
- Find a copy of the letter here.
- Customs and Excise Act, 1964 | Customs Registration,
Licensing and Designation
- SARS would like to exchange declaration information electronically with other government agencies when imported or exported goods have been detained for inspection by them. When applying for an importer or exporter client types these applicants are therefore required to:
- Grant SARS consent; or
- Refuse consent.
- SARS has updated the Customs Trader Portal for Registration and Licensing of Customs Clients – External Guide. Find a copy of the updated version here.
- SARS has also amended the Facility Code List – External Annexure. Find a copy of the updated version here.
SARS publications
- Update on the distribution of funds to non-resident Trusts by
resident Trusts
- SARS published a statement regarding its practice of not approving the release of funds when resident Trusts make distributions to non-resident Trusts. Following queries in this regard, SARS clarified its stance on the matter and confirmed that it will consider approval for the release of funds/amounts distributed to non-resident Trusts. The process required to obtain the necessary approval is to apply for a manual letter of compliance at SARS by emailing MLCA@sars.gov.za.
- SARS has taken note of the fact that the SARB has relaxed certain exchange control requirements but has decided, based on the risks involved, to introduce the above-mentioned requirement to mitigate the risks.
- SARS will perform verification processes.
- Find a copy of the statement here.
- CAPTCHA error when uploading supporting documents to
the SARS Online Query System
- Certain Tax Practitioners and Taxpayers are unable to upload supporting documents to the SARS Online Query System due to a CAPTCHA error.
- SARS has published guidelines on how to fix this error.
- Find a copy of the guidelines here.
- VAT Connect Newsletter
- SARS has published the latest VAT Connect Newsletter Issue 16.
- Find the newsletter here.
- SARS has published the latest VAT Connect Newsletter Issue 16.
- PAYE Employer Reconciliation for 2023/2024
- SARS has published the 2023 release on the "Business Requirements Specification: PAYE Employer Reconciliation".
- Find the release here.
international
- Organisation for Economic Co-operation and Development
("OECD") | Policy Guideline
- The OECD published the Policy Guidance on Mitigating the Risks of Illicit Financial Flows ("IFFs") in Oil Commodity Trading. This Policy Guidance is a product of the Development Assistance Committee's multi-year programme of work on the same topic. It proposes a set of actions for providers of official development assistance to respond to IFFs in oil commodity trading.
- Find more information here.
- OECD | Growth and economic well-being
- The OECD published a statistics news release on the growth and
economic well-being of OECD countries for the first quarter of
2023.
- Find the release here.
- The OECD published a statistics news release on the growth and
economic well-being of OECD countries for the first quarter of
2023.
- OECD | Consumer prices
- The OECD published a statistics news release tracking the
year-on-year inflation of OECD countries.
- Find the release here.
- The OECD published a statistics news release tracking the
year-on-year inflation of OECD countries.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
