South Africa: ENSafrica Tax In Brief

Below, please find issue 104 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.

case law

• High Court of South Africa, Gauteng Division, Pretoria | Diageo SA (Pty) Ltd v Commissioner of the South African Revenue Services (A223/2021) [2023] ZAGPPHC 508
  • This is an appeal against the judgment handed down by the court a quo on 17 March 2021. The court a quo determined the "Cape Velvet Cream Original" ("CVCO"), a liqueur manufactured by Diageo SA (Pty) Ltd (the "Appellant"), to be classifiable in Tariff Heading 2208.70.22 as opposed to Tariff Item 104.23.21 and Tariff Subheading 2208.70.21 (as was contended by the Appellant).
  • The High Court upheld the appeal with costs, including the costs of two counsel.
  • Find a copy of the case here.

legislation and draft legislation

• Public Notice 3631 | Notice to submit returns for 2024 and following
  • Public Notice 3631 in Government Gazette 48867 of 30 June 2023 has been published and requires the persons specified in the Schedule to submit returns for 2024 and the following years by the dates specified in the Schedule. The public notice replaces, for periods commencing on or after 1 March 2023, Notice 241 published in Government Gazette 41512 of 23 March 2018.
  • Find Notice 3631 here.

SARS publications

• Media release | Trade statistics for May 2023
  • South Africa recorded a preliminary trade balance surplus of ZAR10.2-billion in May 2023 attributable to exports of ZAR184.2 billion and imports of ZAR174.0-billion.
  • Find the Trade Statistics webpage here.
• Interpretation Note 6 (Issue 3) | Resident – Place of effective management (Companies)
  • SARS has published a new version of the interpretation note regarding the place of effective management of companies.
  • Find the new interpretation note here.
• Interpretation Note 115 (Issue 2) | Withholding tax on interest
  • Find the new interpretation note here.
• Notice | Updated confirmation of disability diagnosis (ITR-DD) form
  • Taxpayers with a current valid ITR-DD form do not have to get a new ITR-DD with the new form. The new form will only apply to new applicants going forward.
  • Find the updated ITR-DD form here and more information regarding tax and disability here.
• Notice | Auto-assessments
  • Personal Income Tax taxpayers who qualify for this year's Filing Season 2023 auto-assessment can now check whether they have been auto-assessed via the SARS Online Query Service functionality.
  • Find the SARS Online Query Service functionality here.
• Tables of Interest Rates
  • SARS has updated the interest rates on outstanding taxes and interest rates payable on certain refunds of tax.
    • Find the updated table here.
  • SARS has updated the interest rates payable on credit amounts.
    • Find the updated table here.
• Interpretation Note 101 (Issue 2) | Section 24I – Gains or losses on foreign exchange transactions
  • SARS has published a new version of the interpretation note regarding gains or losses on foreign exchange transactions.
  • Find the new interpretation note here.
• Interpretation Note 106 (Issue 2) | Deduction in respect of certain residential units
  • SARS has published a new version of the interpretation note regarding deductions in respect of certain residential units in terms of section 13sex of the Income Tax Act, 1962.
  • Find the new interpretation note here.
• Income Tax Guide | PAYE responsibilities with regard to artists/models/crew in the film industry
  • SARS has published a new version of the guide on the employers' tax responsibilities with regard to artists/models/crew in the film industry.
  • Find the guide here.

customs and excise

• Customs and Excise Act, 1964 | Draft documents for public comment
  • Draft amendments are proposed to Schedule No. 5 to provide for refunds or drawbacks of duties upon export of imported fuel.
  • The due date for comment is 21 July 2023.
  • Find the draft amendments and additional information here.
• Customs and Excise Act, 1964 | Rule amendment notice
  • A rule amendment notice (as published in Government Gazette 48862 of 30 June 2023) relating to amendments to rules under sections 46, 49 and 120 – Trade agreements (DAR249) ("Notice R3620"), has been published.
  • Find Notice R3620 here.
• Customs and Excise Act, 1964 | Rule amendment notice
  • A rule amendment notice (as published in Government Gazette 48862 of 30 June 2023) relating to amendments to rules under rules under section 120 – Item 202.00 of the Schedule to the rules by the substitution of forms DA 185 and DA 185.4A3 (DAR248) ("Notice R3621"), has been published.
  • Find Notice R3621 here.
• Customs and Excise Act, 1964 | Tariff Amendments 2023
  • The tariff amendment notice R3669, as published in Government Gazette 48959 of 14 July 2023, relates to the amendments to Part 3 of Schedule No. 6, by the insertion of Note 14 as well as rebate item 670.05/000.00/01.00, in order to provide for a partial refund of the Road Accident Fund Levy on fuel used in the manufacturing of foodstuffs.
  • The notice applies with retrospective effect from 1 April 2023.
  • Find the notice here.

international

• OECD | Tax Transparency in Africa 2023
  • During the 13th Meeting of the Africa Initiative, "Tax Transparency in Africa 2023" was launched.
  • "Tax Transparency in Africa 2023" presents African countries' latest advances in tackling the major issue of tax evasion and other illicit financial flows (IFFs) through transparency and exchange of information (EOI) for tax purposes.
  • Find more information here.
• OECD | 138 countries and jurisdictions agree historic milestone to implement global tax deal
  • 138 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting agreed on an Outcome Statement recognising the significant progress made and allowing countries and jurisdictions to move forward with historic, major reform of the international tax system.
  • Find more information here.