DRAFT DOCUMENTS FOR PUBLIC COMMENT

 
All comments received on drafts are considered in full, but due to time constraints, no individual correspondence will be entered into.
 
The draft documents are categorised according to their due date for comments and comments may be submitted per email to the address indicated in the last column.
 
 
 

Latest draft uploaded for comment

Look under:  

 8 October 2018

Next due date for comments​ Legislation Category Description​​ Send comments to​​
18 September 2018 Customs & Excise Act, 1964​

​Draft Amendment Notices

 

Explanatory Note
The proposed amendments to Schedule No. 6 to the Act are contained in the draft amendments as follows:

  • Section C of Part 1 of Schedule No. 6 is amended to provide for the rebate provision on unfortified wine used in the manufacture of other foodstuffs.

  • Form DA 133 is being inserted in the Schedule to the Rules. This form is used by the rebate user for recording the manufacturing, other operation or process.

 

For the draft amendment to section C of Part 1 of Schedule No. 6:

mmaphosa@sars.gov.za

 

 
 
 
For the draft rule inserting form DA 133:

C&E_legislativecomments@sars.gov.za

 

 

25 September 2018
New!​​
Customs & Excise Act, 1964​

Draft Amendment Notices

Draft amendment to Part 1 of Schedule No. 1, and Part 1F of Schedule No. 6, by the –

Explanatory Note
The proposed amendment provides for separate 8-digit tariff subheadings for road rollers and to make a distinction between single and more than one roller road rollers.

The two rebate items are deleted as they have become redundant.

ampanza@sars.gov.za

and

mmaphosa@sars.gov.za

25 September 2018
New!​​​
​Customs & Excise Act, 1964​

Draft Rule Amendments

Explanatory Note
Due to the creation of rebate item 620.25 for unfortified wine for use in the manufacture of food stuffs, consequential amendments are being made to rule 75(24). Rule 75(24) provides for the keeping of registers by rebate users of excisable goods used in the manufacture of non-alcoholic beverages, other non-liquor products or excisable goods for industrial use. Rebate item 620.25 and "food stuffs" is being inserted in the rules.

C&E_legislativecomments@sars.gov.za

21 September 2018

Extended to 28 September 2018
New!​​

​Customs & Excise Act, 1964​ Draft Rule Amendments
Explanatory Note
The draft rules relate to internal appeals under section 77H of the Customs & Excise Act, 1964. The current rules are being replaced in its entirety.
C&E_legislativecomments@sars.gov.za
1 October 2018 ​Customs & Excise Act, 1964​

Draft Amendment Notices

 

 

 

  • Draft amendment to Part 3 of Schedule No. 1 to –
    • delete rebate item 315.05/7308.90.90/01.01 in Part 1 of Schedule No. 3 as a consequence to a deletion in Part 1 of Schedule No. 1; and
    • insert rebate item 315.05/7308.90.99/01.01, with effect from 1 January 2019.

 

  • Draft amendment to Part 2 of Schedule No. 4 to –
    • delete rebate item 460.02/12.06/01.04 as it was created for goods entered for home consumption on or before 10 May 2002, with effect from 1 January 2019; and 
    • delete rebate item 460.07/39.19/01.04 in Part 2 of Schedule No. 4 as it was created for goods entered for home consumption on or before 12 April 1997, with effect from 1 January 2019.

 

  • Draft amendment to Part 3 of Schedule No. 5 to –
    • delete Note 1 to rebate item 537.00 applicable to MIDP and Notes 2 is renumbered as Note 1, to remove the reference to rebate item 317.04 applicable to MIDP, with effect from 1 January 2019;
    • delete refund items 537.01, 537.01/8701.20/01.06, 537.01/87.02/01.04, 537.01/87.03/01.04, 537.01/87.04/01.04 and 537.01/87.06/01.04 are being deleted, as they were applicable to MIDP, with effect from 1 January 2019; and
    • delete refund item 538.00/00.00/02.00 applicable to MIDP, with effect from 1 January 2019.

Explanatory Note
An explanatory memorandum has been added to the draft notices in which all the different proposed amendments are explained.

mmaphosa@sars.gov.za

and

ampanza@sars.gov.za

8 October 2018
New!​
Customs & Excise Act, 1964​​

Draft Amendment Notice

Explanatory Note
Draft rules under section 8 of the Customs and Excise Act, 1964 (Act No. 91 of 1964 ), relating to the reporting of conveyances and goods ("RCG") for trains, and intended to replace the current rules under section 8 of that Act are hereby published for public comment.

The content of the proposed rules under section 8 is, within the context of the 1964 Act, closely related to Chapter 3 of the Customs Control Act, 2014 (Act No. 31 of 2014 ). The proposed rules are intended to bring the RCG requirements under the 1964 Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.

C&E_legislativecomments@sars.gov.za
 
 
  

 

 

Sorry, you've missed the due date.

These drafts will be removed in due course.​ ​ ​

Due date was for: ​Legislation Category

Type of Draft & Description

31 August 2018 ​Income Tax Act, 1962​ Draft Guide
Explanatory Note
This draft guide provides users with general guidance on venture capital companies (VCCs) and investments in such companies as governed by section 12J. Section 12J allows a holder of venture capital shares issued by a venture capital company to claim a 100% deduction of the cost of those shares, provided certain requirements are met. The section is effective for venture capital shares acquired on or after 1 July 2009 but on or before 30 June 2021. Section 12J has requirements at the level of the VCC and at the level of the “qualifying company” whose shares are held by the VCC.
​16 August 2018 ​National Legislation Draft Bills and Explanatory Memoranda
 
Explanatory Note
National Treasury published the draft Taxation Laws Amendment Bill, 2018 (TLAB) and draft Tax Administration Laws Amendment Bill, 2018 (TALAB). The TLAB and TALAB include the legislative amendments for the more complex tax proposals that were announced in the 2018 Budget Review on 21 February 2018.
See also the Media Statement.
​29 June 2018 ​Income Tax Act, 1962

Draft Interpretation Note

Explanatory Note
Issue 1 of Interpretation Note 93 "The Taxation of Foreign Dividends" has been updated primarily to reflect legislative amendments. Some of the more significant amendments include the following:

  • The ratios applied in section 10B(3) to calculate the partial exemption applicable to foreign dividends were amended (see 4.3.7 of the Note); and
  • The circumstances in which the exemption is no longer available under section 10B(5) and section 10B(6) were amended (see 4.3.9 and 4.3.10 of the Note).
29 June 2018 ​Income Tax Act, 1962

​Draft Guide

Explanatory Note
This guide provides general guidance on the calculation of the tax payable on the taxable portion of lump sum benefits from retirement funds in South Africa.

​26 June 2018 ​Tax Administration Act, 2011​ ​Draft Rules
Explanatory Note
Rules governing the procedures to lodge an objection and appeal against an assessment or decision under Chapter 9 of the Act, procedures for alternative dispute resolution, and the conduct and hearing of appeals before a Tax Board or Tax Court.
​25 May 2018 ​Customs & Excise Act, 1964
Draft Amendment Notice
Explanatory Note
The unique consignment reference (UCR) is assigned to a consignment of goods for tracking purposes throughout the supply chain from origin to destination. The current UCR is being replaced with a Southern African Customs Union (SACU) UCR, which will initially create a platform for exchange of customs information between SARS Customs and the customs administration of Swaziland, followed later by the customs administrations of the other SACU members. The purpose of the proposed SACU UCR is to link export and import declarations using a common reference, enabling data exchange and facilitating trade within the SACU region. The draft amendments provide for the generation, use and constitution of the UCR.​
​23 May 2018 ​​Tax Administration Act, 2011
Draft Notice
Explanatory Note
Persons specified in the Schedule to the Notice must submit returns for the 2018 year of assessment, as defined in the Schedule, within the periods specified in the Schedule.
​18 May 2018 ​Mineral and Petroleum Resources Royalty Act, 2008
Draft Interpretation Note
Explanatory Note
The Mineral and Petroleum Resources Royalty Act 28 of 2008 provides for the payment of a royalty on the transfer of a mineral resource extracted from within the Republic. Schedule 2 to this Act contains a list of values which comprise the “condition specified” for particular unrefined mineral resources. However, some mineral resources in Schedule 2 such as aggregates and sand have their value specified as “bulk”. This interpretation note examines the meaning of “bulk”.​
​​11 May 2018 ​​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
The parties to a lease agreement may agree that the lessee must pay an amount in addition to or in lieu of the rent, known as a lease premium. This expense, in the case of the lessee, and the receipt or accrual, in the case of the lessor, are subject to specific provisions in the Act. This Note provides guidance on the application of relevant provisions, namely, sections 1(f) and (h) and paragraph (g) of the definition of "gross income".
​11 May 2018 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
A lease agreement may stipulate that the lessee is obliged to effect improvements to the lessor’s land or buildings. This expense, in the case of the lessee, and receipt or accrual, in the case of the lessor, are subject to specific provisions in the Act. This Note provides guidance on the application of relevant provisions, namely, sections 11(g) and (h) and paragraph (h) of the definition of "gross income".
​11 May 2018 ​Income Tax Act, 1962 ​​Draft Interpretation Note
Explanatory Note
Section 13bis provides a deduction for buildings used by hotelkeepers if specified requirements are met. The deduction is comprised principally of an annual allowance on the cost of erecting hotel buildings and the cost of effecting improvements to such buildings. A grading allowance is also available but is unlikely to be relevant to most hotel keepers after 2012. This interpretation note examines the interpretation and application of section 13bis.
30 April 2018 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This draft Note provides guidance on the interpretation and application of
section 18A(2B) and (2C) in relation to the audit certificate, which must be obtained and retained in specified circumstances for section 18A receipts issued by an approved organisation or department.
30 April 2018 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
Section 23I prohibits a deduction of any expenditure incurred for the right or permission to use intellectual property and other expenditure which is directly or indirectly related to such expenditure. This Note provides guidance on the interpretation and application of section 23I.
30 April 2018 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This Note provides guidance on the interpretation and application of section 13sex which provides for an allowance on any new and unused residential unit or improvements to a residential unit used for the purpose of trade and an additional allowance on that residential unit if it qualifies as a low-cost residential unit.
30 April 2018 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This Note provides guidance on the interpretation and application of section 13quin which provides for an allowance on any new and unused buildings or any new and unused improvements to any building, owned and wholly or mainly used by a taxpayer for purposes of producing income in the course of that taxpayer’s trade.
​​For sight only ​Customs Duty Act, 2014; and
Customs Control Act, 2014
Rule Amendments
Explanatory Note
Refer to the cover note​
​31 March 2018 ​Tax Administration Act, 2011​ Draft Interpretation Note
Explanatory Note
This draft Note provides guidance on the factors that a senior SARS official will take into account when deciding whether to extend the period for lodging an objection under section 104(4) or an appeal under section 107(2). It also serves to highlight that the period during which an objection or appeal may be lodged is limited.
​22 March 2018 National Legislation​​ National Legislation
Explanatory Note
The above documents as announced during the Minister of Finance's 2018 Budget Speech are published for public comments.
​20 March 2018 ​Customs & Excise Act, 1964​

Draft Amendment Notices

 

Explanatory Note
Legislative amendments are proposed to reform the excise administration of stills and to regulate the manufacture of excise goods for own use:

  • Draft rule amendments address the stills capacity that is allowed, records to be kept by stills makers and importers, and obligations upon receipt of unmarked stills. Amendments to relevant items in Schedule No. 8 that relate to stills are also proposed and draft forms DA104 and DA105 are proposed.
  • New draft rules are proposed to regulate the manufacture of excisable goods solely for use by the manufacturer thereof. The updated draft form DA185 provides for the registration of such manufacturers of excise goods for own use.
13 March 2018 ​Customs & Excise Act, 1964​
Draft Amendment Notice
Explanatory Note
Rules under section 64
Section 64E of the Customs and Excise Act, 1964, allows the Commissioner to confer accredited client status on applicants who meet certain criteria. In return, the Commissioner confers benefits to reward the traders that meet the criteria. In 2011, the rules to section 64E were amended to provide for a Level 2 Accreditation status. The proposed draft inserts two additional benefits to Level 2 Accreditation. The draft also includes amendments to the proforma agreement to make it applicable to Level 2 Accreditation.

Draft forms under rule 8
Draft forms under rule 8 relating to the reporting of conveyances and goods ("RCG") have been amended and published for comment.
21 February 2018 ​Customs & Excise Act, 1964 Draft Amendment Notice
Explanatory Note
Refer to the cover note.
​6 February 2018 ​Customs & Excise Act, 1964​

Draft Amendment Notice

  • Draft amendment to Part 1D of Schedule No. 6 by the –
    • insertion of rebate items 621.08/104.23.04/03.01, 621.08/104.23.04/03.02, and 21.08/104.23.04/03.03; and
    • insertion of rebate items 621.08/104.23.28/04.01, 621.08/104.23.28/04.02 and 621.08/104.23.28/04.03

Explanatory Note
The proposed amendment provides a rebate of the full excise duty for ethyl alcohol with an alcohol content of less than 80% under rebate item 621.08, which is for industrial use or for use in the manufacture of other non-liquor products.

19 January 2018 ​Customs & Excise Act, 1964​​​​ Draft Rule Amendments
Explanatory Note
Draft rules under section 8 of the Customs and Excise Act 91 of 1964, relating to the reporting of conveyances and goods ("RCG"), and intended to replace the current rules under section 8 of that Act are hereby published for public comment. The content of the proposed rules under section 8 is, within the context of the 1964 Act, closely related to Chapter 3 of the Customs Control Act 31 of 2014. The proposed rules are intended to bring the RCG requirements under the 1964 Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.
​31 October 2017 ​Employment Tax Incentive Act, 2013 Draft guide
Explanatory Note
The Guide to the Employment Tax Incentive (ETI) has been updated mainly to bring into consideration, the legislative amendments enacted by the Taxation Laws Amendment Act 15 of 2016. The ETI is a temporary tax incentive that may be claimed by eligible employers for qualifying employees employed on or after 1 October 2013. It commenced on 1 January 2014 and will end on 28 February 2019.
​​​13 October 2017 ​Income Tax Act, 1962​​ Draft Interpretation Notes
Explanatory Note
This Note provides clarity on the interpretation and application of section 10(1)(gC)(ii) in respect of a lump sum, pension or annuity received by or accrued to any resident from a source outside the Republic, and in respect of amounts transferred from a source outside the Republic into a local retirement fund.
4 October 2017 ​Customs & Excise Act, 1964​​ Draft Rule Amendments
Explanatory Note
Draft rule amendments in relation to trade agreements
For the purposes of consistency with the latest developments in respect of the introduction and substitution of the new and old trade agreements, the rules to the following trade agreements were amended:
  • The African Growth and Opportunity Act (AGOA);
  • Economic Partnership Agreement between the SADC EPA states, of the one part, and the European Union and its member states, of the other part (SADC/EPA);
  • Generalized System of Preferences (GSP) European Union, Norway, Turkey and the Russian Federation; and
  • Preferential Trade Agreement between the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU). 
Draft rule amendments for the Generalized System of Preferences (GSP) Norway – The Registered Exporter System (REX system)
The Registered Exporter System (REX system) is the new system of certification of origin of goods which is based on a principle of self-certification on statements on origin. The REX system does not impact the rules for determining the origin of goods.
​​31 August 2017 ​Income Tax Act, 1962​​ Draft Interpretation Note
Explanatory Note
The draft interpretation note on "Section 24I – gains and losses on foreign exchange transactions" provides guidance on the interpretation and application of section 24I. Section 24I deals with the income tax treatment of foreign exchange gains and losses on exchange items as well as premiums or like consideration received or paid in respect of foreign currency option contracts (FCOC) entered into and any consideration paid in respect of an FCOC acquired by certain persons.

The tax treatment of transactions denominated in a foreign currency often requires a consideration of section 24I and other provisions of the Act. This Note identifies some of the situations in which one or more of these provisions may apply. For example, if trading stock, the purchase price of which is denominated in USD, is purchased on credit from a supplier, the provisions of section 25D and section 24I are relevant.

This Note will withdraw and replace Practice Note 4 dated 8 March 1999 "Income Tax: The Treatment of Gains and Losses on Foreign Exchange Transactions in terms of Section 24I of the Income Tax Act, 1962 (the Act)".
​31 July 2017 ​Customs Duty Act, 2014 Customs Duty Rules
Explanatory Note
Part 2 of Chapter 3 of the Customs Duty Rules, dealing with Deferment is hereby published for public comment.
 
Note that the draft Part has not been renumbered as renumbering will be done once the Part is inserted into the text of Chapter 3 of the Customs Duty Rules. 
26 July ​2017 ​Customs & Excise Act, 1964​​​​ Draft Rule Amendments
Explanatory Note
New technologies in the alcoholic beverages sector allow for the extraction of alcohol from beverages of a fermented origin. The current rules provide for the application of such fermented ethyl alcohol in primary or secondary spirits manufacturing, the denaturing thereof for rebated use or the export thereof. This proposed rule amendment will in addition provide for the storage of such fermented ethyl alcohol in a licenced special storage warehouse for the un-denatured supply thereof to registered rebate users. The draft rule amendment must be read together with the proposed rebate amendments

The rebate item numbers 619.07, 620.19 and 620.21 has been amended to include wine, other fermented beverages and beer that have undergone a process of extracting the alcohol, to manufacture non-alcoholic beverages.

Rebate items 621.23, 621.25, 621.33, 621.35 have been created to provide for the fermented ethyl alcohol by-product derived from the extraction process to be moved to primary (VMP) or secondary (VMS) warehouse to undergo any further processing.

In addition rebate 621.27, 621.29, 621.37, 621.39 is also created to provide for the fermented ethyl alcohol by-product derived from the extraction process to be moved to a special storage warehouse for the undenatured supply thereof to registered rebate users or export.
​​For sight only ​Customs Duty Act, 2014

Customs Duty Rules (Third Draft)

Explanatory Note
The third draft of the Customs Duty Rules made under the Customs Duty Act, 2014 (Act No. 30 of 2014), is hereby published for sight. As previously explained to stakeholders, this draft has been "frozen" for purposes of SARS systems development.

Please note that the draft is not published for public comment at this stage.

​20 June 2017 ​Customs & Excise Act, 1964​​​ Draft Rule Amendment
​Not for comment ​Customs Control Act, 2014

Customs Control Rules (Third Draft)

Explanatory Note
The third draft of the Customs Control Rules made under the Customs Control Act 31 of 2014, is hereby published for sight. As previously explained to stakeholders, this draft has been "frozen" for purposes of SARS systems development.

Please note that the draft is not published for public comment.

​4 May 2017 ​Value-Added Tax Act, 1991

​​Draft Interpretation Note

Explanatory Note
This draft Note sets out the VAT treatment of the international transportation of passengers and/or goods, the VAT treatment of ancillary transport services, and rate of tax applicable to each of the aforementioned transportation services.

This Note does not deal with the VAT treatment of exempt passenger transport as envisaged in section 12(g).

​21 April 2017 ​​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
The withholding tax on royalties applies to royalties paid by a resident to a non-resident for the use of intellectual property belonging to the non-resident. Like other withholding taxes, withholding taxes on royalties can potentially be reduced or eliminated by a tax treaty between the states of the contracting parties.

The withholding tax on royalties was previously contained in section 35, which provided for a withholding rate of 12%. Owing to the need for uniformity between the different types of withholding taxes, the withholding regimes were amended. Section 35 was accordingly repealed and replaced with sections 49A to 49H with effect from 1 July 2013. The withholding rate was increased to 15% with effect from 1 January 2015.
 
3 March 2017 ​Income Tax Act, 1962​ Draft Binding General Ruling
Explanatory Note:
This BGR provides clarity on the interpretation and application of the funding requirement in
section 30B(2)(b)(ix).
20 January 2017 ​Customs & Excise Act, 1964​​ Draft Rule Amendment
 
Draft amendment of rules to sections 13, 46A and 49 in respect of the –
  • Economic Partnership Agreement between the SADC EPA states, of the one part, and the European Union and its' member states, of the other part; and
  • Preferential Trade Agreement between the Common Market of the South (MERCOSUR) and the Southern African Customs Union (SACU)
See also –
15 January 2017 ​Customs & Excise Act, 1964​​ Draft Rule Amendments
 
 
 
  • Draft amendment in Part 3E of Schedule No. 1 to –
    • substitute the Notes to determine the calculation on the imported / locally manufactured tyres if the actual tyre mass is not available;
    • provide for hybrid motor vehicles that were introduced with the implementation of HS 2017;
    • remove re-treaded tyres for motor cars, buses and lorries; and
    • delete tariff subheadings 9801.0010 to 9801.00.55 in the tyre levy.
 
 
 
 
 
 
 
  • Form DA 185.4B2
    (This form has been withdrawn from this round for public comments, as it has been circulated for comments previously. No comments were received.)
​​18 October 2016 ​Income Tax Act, 1962 Draft Binding General Ruling
Explanatory Note
This BGR provides clarity on the meaning of "annual or other long-term member" referred to in section 30B(2)(b)(ix).
  
Last Updated: 17/09/2018 1:44 PM     print this page
SARS eFiling eFiling Login eFiling Register Now eFiling Forgot Password eFiling Forgot Username E@syFile
FIND A PUBLICATION
FIND A FORM
FIND AN FAQ