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 comment. Comments may be emailed to the address indicated in the last column.  
 
 
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 9 November 2020

​​Due date
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Due date extended to 30 October 2020
 
9 October 2020
​Customs & Excise Act, 1964 Draft rules amendments
Explanatory Note
Draft rules for purposes of the  Agreement Establishing the African Continental Free Trade Area (AfCFTA) and its Protocols, Annexes and Appendices.

Date published: 22 September 2020
C&[email protected]
9 November 2020
New!
​Customs & Excise Act, 1964

Draft Schedule Amendments

  • Explanatory memorandum;
  • Amendment to Chapter 44 – To create an 8-digit tariff subheading for particle board of wood coated, covered or laminated with melamine; 
  • Amendment to Chapter 72 – To create an 8-digit tariff subheading for wires coated or plated with copper with diameter of 1.30 mm or more but not exceeding 4.88 mm, consisting of a carbon content greater than 0.4% but not exceeding 0.85%; and
  • Amendment to Chapter 94 – For the creation of separate 8-digit tariff subheadings under tariff headings 94.01, 94.03 and 94.04.
Explanatory Note
Various technical amendments to Part 1 of Schedule 1 to create separate 8-digit tariff subheadings classifiable in Chapters 44, 72 and 94.

Date published: 12 October 2020
[email protected]
 
 
 

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Due date was for: Legislation Category Type of Draft & Description
8 October 2020 ​​Customs & Excise Act, 1964 Draft tariffs amendments
Explanatory Note
An explanatory memorandum has been added containing explanations of the proposed amendments.

Date published: 10 September 2020
​1 October 2020 ​Customs & Excise Act, 1964 ​​Draft Schedule amendment
Explanatory Note
Draft amendment to Part 1 of Schedule No. 1 to implement the 2021 Economic Partnership Agreement phase-downs with effect from 1 January 2021.

Date published: 1 September 2020
​​24 September 2020 ​Customs & Excise Act, 1964 Draft rule amendment
Explanatory Note
The draft amendments extends the current hours of attendance and hours of business at Kopfontein, Oshoek and Lebombo commercial ports to 24 hours daily.

Date published: 10 September 2020
​18 September 2020 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This Note provides guidance on the words "received by" in the definition of gross income and the treatment of the receipt of a deposit in the ordinary course of business. The Note does not deal with amounts deposited by clients with banks and similar deposit-taking financial institutions.

Date published:
 23 July 2020
​9 September 2020 ​Customs & Excise Act, 1964 Draft rules amendments
Explanatory Note
The draft amendment to rules 59A and 60 –
  • clarifies the grace period allowed for compliance with new registration or licensing requirements when updating information, and substitutes the period of "60 days" with "60 calendar days"; and
  • corrects references in the rules to "20 April 2020" to correspond with the implementation date of 24 April 2020, as indicated in Notice R.473 of Government Gazette 43245.

    Please note: Public comment is only invited in respect of the proposed amendment referred to in the second bullet point. The proposed amendment in respect of the first bullet point was already published for public comment on 7 August 2020.
Date published: 2 September 2020
31 August 2020 ​National Legislation 2020 Draft Rates Bill, Draft Tax Bills, Draft Regulations and Venture Capital Company (VCC) Survey
Explanatory Note
National Treasury and SARS hereby publish the 2020 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, the 2020 drat Taxation Laws Amendment Bill (TLAB), 2020 draft Tax Administration Laws Amendment Bill (TALAB) and the draft Regulations Prescribing Electronic Services, to give effect to the the 2020 Budget and the extension of some COVID-19 relief measures.

Furthermore, Venture Capital Companies (VCCs) are requested to complete the VCC survey.

Date published: 31 July 2020
​21 August 2020 ​Customs & Excise Act, 1964​ Draft rules amendments
Explanatory Note
The draft amendments clarify the grace period allowed for compliance with new registration or licensing requirements when updating information, and substitutes the period of "60 days" with "60 calendar days".

Date published: 7 August 2020
​14 August 2020 ​​Customs & Excise Act, 1964​ Draft rule amendment
Explanatory Note
Draft amendment in relation to clearing instructions, including the specific information that must be reflected by the principal.

Date published: 30 July 2020
11 August 2020 ​Customs & Excise Act, 1964​ Draft tariff amendment
 
Explanatory Note
The insertion of a new Note to give clarity on the persons allowed to claim a refund for tyre levy purposes and the required documents required when claiming such refund.
 
 
Date published: 14 July 2020
​5 August 2020 Customs & Excise Act, 1964​ Draft tariff amendments
 
Explanatory Note
The amendments are done in order to support the vision of the South African Automotive Masterplan of creating "a globally competitive and transformed industry that contribute to the sustainable development of South Africa’s productive economy creating prosperity for industry stakeholder and broader society".
 
The amendments should be read with the International Trade Administration Commission’s draft published on the following link:
 
Date of published: 8 July 2020
​20 July 2020 Income Tax Act, 1962​ Draft Interpretation Note
  • Draft Interpretation Note – Vesting of income in a resident beneficiary by a non-resident trust: Interaction between section 25B(1) and section  7(8)​
Explanatory Note
This Note provides clarity on the interpretation and application of the words "subject to the provisions of section 7" in section 25B(1) and, more specifically, whether section 7(8) or section 25B(1) applies when income received by or accrued to a non-resident trust by reason of or in consequence of a donation, settlement or other disposition by a resident, is vested in a resident beneficiary by the trustees of the non-resident trust.

Date published: 22 June 2020
​30 June 2020 Value-Added Tax Act, 1991​ Draft Interpretation Note
Explanatory Note
This draft Note clarifies the VAT implications resulting from the participation in loyalty programmes based on the current provisions of the VAT Act. This Note does not attempt to list and analyse all the loyalty programmes available. Loyalty programmes differ from each other, evolve and change because of continuous changes in market conditions, competition etc. For this reason, the general VAT principles applicable to loyalty programmes as contained in this Note must be analysed and subsequently applied to each transaction in a loyalty programme in accordance with that specific loyalty programme’s characteristics or nature.
 
Date published: 2 April 2020
​30 June 2020 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This draft Note provides clarity on the tax treatment of amounts received by or accrued to missionaries who are performing religious or related activities in South Africa.
 
Date published: 26 March 2020
​24 June 2020 ​Customs & Excise Act, 1964 ​​Draft rule amendment
Explanatory Note
The draft amendment provides that persons who are excluded from formal registration requirements may make use of the registration code 70707070. The use of this code is subject to requirements set out in the rule.
 
Date published: 3 June 2020
​15 June 2020 ​Customs & Excise Act, 1964 Draft rule amendment
Explanatory Note
The draft amendment provides clarity in respect of telephonic clearing instructions by the importer, as referred to in rule 39.01(c).

Date published: 25 May 2020
​29 May 2020 ​Income Tax Act, 1962 ​​Draft Interpretation Note
Explanatory Note
The draft interpretation note on Withholding Tax on Royalties provides guidance on the interpretation and application of sections 49A to 49H relating to withholding tax on royalties.

A draft note was previously issued on Withholding Tax on Royalties, however, due to significant changes and alignment it is reissued for a second round of comment. 
 
Date published: 18 March 2020
​29 May 2020 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
The draft interpretation note on Withholding Tax on Interest provides guidance on the interpretation and application of sections 50A to 50H relating to withholding tax on interest.
 
Date published: 18 March 2020
​29 May 2020 ​National Legislation Proposal to introduce export taxes on scrap metal
Explanatory Note
As recommended by the International Trade Administration Commission (ITAC), the proposed export taxes to apply to scrap metal are as follows:
  • Ferrous metals (including stainless
    steel) – R1 000.00 per tonne
  • Aluminium – R3 000.00 per tonne
  • Red Metals – R8 426.00 per tonne
  • Other (waste and scrap metals) –R1 000.00 per tonne
Date published: 20 May 2020
31 March 2020

Due date extended to 15 May 2020
​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This draft Note provides guidance on on calculating the section 11(j) doubtful debt allowance. Taxpayers should pay attention to the accompanying document outlining the application process, the requests for information (RFIs) and the excel-based Loss Allowance Models
 
Date published: 18 February 2020
31 March 2020

Due date extended to 15 May 2020
​Income Tax Act, 1962 Draft Binding General Ruling
Explanatory Note
The draft BGR provides clarity on what constitutes an unbundling transaction under section 46(1) of the Income Tax Act 58 of 1962 when an unbundling company having non-qualifying shareholders unbundles shares in an unlisted unbundled company. A non-qualifying shareholder is a shareholder of the unbundling company that does not form part of the same group of companies as the unbundling company.
 
Date published: 13 February 2020
​15 May 2020 ​National Legislation Revised COVID-19 Draft Tax Bills and Draft rule amendments
 
Explanatory Note
National Treasury and the South African Revenue Service (SARS) publish, for public comment, the revised 2020 Draft Disaster Management Tax Relief Bill and 2020 Draft Disaster Management Tax Relief Administration Bill. These Bills give effect to the media statement issued by National Treasury on 24 April 2020 regarding further tax measures to combat the COVID-19 pandemic, following the address by President Cyril Ramaphosa on 21 April 2020.
 
The revised 2020 Draft Disaster Management Tax Relief Bill and the 2020 Draft Disaster Management Tax Relief Administration Bill provide the necessary legislative amendments required to implement the further tax measures aimed at combating the COVID-19 pandemic and also take into account public comments received on the initial batch of COVID-19 draft tax bills published on 1 April 2020.
 
Date published: 1 May 2020
​5 May 2020 ​Customs & Excise Act, 1964​ Draft rule amendments
Explanatory Note
The UCR is a unique reference number assigned to a consignment of goods for the purpose of tracking the goods throughout the supply chain from origin to destination. SARS is in the process of implementing the Southern African Customs Union (SACU) UCR which aims to facilitate the exchange of Customs information between SACU Member States. The Customs Administration of Lesotho is now being added to the list of countries participating in the SACU UCR implementation.

Date published: 21 April 2020
​30 April 2020 ​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
The draft interpretation note provides guidance on the interpretation and application of the "funding" requirement in section 30B(2)(b)(ix) for an entity to be approved by the Commissioner, and to retain such approval for its receipts and accruals to qualify for exemption from normal tax under section 10(1)(d)(iii) or (iv).

The "funding" requirement is only one of a number of requirements, for purposes of section 30B, that must be included in the founding document. The other requirements are not addressed in this Note.
 
Date published: 24 March 2020
​30 April 2020 Income Tax Act, 1962​ Draft Interpretation Note
Explanatory Note
The draft interpretation note discusses the requirements of the public benefit activity (PBA) contemplated in paragraph 3(c) in Part I of the Ninth Schedule to the Income Tax Act 58 of 1962 (the Act). PBA 3(c) provides for residential care to be provided to retired persons. An organisation carrying on that PBA as its sole or principal object may apply for approval as a public benefit organisation under section 30(3) of the Act, and if approved by the Commissioner, obtains preferential tax treatment under section 10(1)(cN), if all of the prescribed requirements are met.
 
Date published: 21 February 2020
28 April 2020 ​​National Legislation Draft explanatory notes on further COVID-19 tax measures, and draft notices relating to expanding access to living annuities
Explanatory Note
Following queries received, National Treasury and SARS publish, for urgent comment, explanatory notes on further COVID-19 tax measures, and notices relating to expanding access to living annuities. Because of time constraints to have these notices signed into law with immediate effect, the comment period is open for a very limited time. 
 
Date published: 25 April 2020
​15 April 2020 ​National Legislation ​​COVID-19 Draft Tax Bills
Explanatory Note
Following the media statement issued by the Minister of Finance on 29 March 2020 on Tax Measures to Combat the COVID-19 pandemic, the National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the 2020 Draft Disaster Management Tax Relief Bill and the 2020 Draft Disaster Management Tax Relief Administration Bill. These draft Bills provide the necessary legislative amendments required to implement the COVID-19 tax measures. The measures contained in these draft Bills will take effect on 1 April 2020.
 
Date published: 1 April 2020
​​30 March 2020 ​Customs & Excise Act, 1964 Draft Schedule amendments
Explanatory Note
The rebate item is inserted to provide for agreements that the Republic of South Africa may enter into. This item will allow institutions or organisations to import goods under rebate that will be used for official business by those organisation or institutions in line with the terms of that agreement.

Date published: 2 March 2020
​30 March 2020 ​National Legislation Draft Bill
  • Draft Bill – Draft 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill
Explanatory Note
National Treasury published the Draft 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill as supporting information to the 2020 Budget proposals. It is expected that the actual Bill will be introduced later in the year.
 
Date published: 26 February 2020
​17 March 2020 ​Customs & Excise Act, 1964 Draft rule amendments
Explanatory Note
Section 19A of the Customs and Excise Act, 1964 (the Act) provides special provision in respect of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored. The amendment to rules 19A.01 and 19A3.04 relates to the deletion and insertion of updated item numbers as per the HS tariff.

Section 32 of the Act provides for ascertaining the strength of spirits. The rules are being amended to provide the instrument, device or equipment to be used for the determination of alcoholic strength by volume of any spirits.

Section 36 of the Act provides for special provisions regarding beer. The insertion of rule 36.01(e) state that the provisions of rule 32.01 apply mutatis mutandis for the determination of alcoholic strength by volume for beer.

Date published:
3 March 2020
​​​16 March 2020 ​Customs & Excise Act, 1964 Draft rule amendment
 
Draft rule and schedule amendments in terms of the diesel refund scheme
Explanatory Note
First drafts of diesel refund rules, forms and notes to the Customs and Excise Act, 1964, are hereby published for public comment. The draft amendments are the result of consultations with affected industries, including the "Review of the Diesel Fuel Tax Refund System" discussion paper of 2017, industry-specific workshops conducted in 2018 and further technical inputs received from stakeholders during 2019. The draft legislation presents a provisional outline for the review of the diesel refund administration to facilitate further industry engagements during the course of the year.
 
Date published: 31 January 2020
​​13 March 2020 ​​Customs & Excise Act, 1964 Draft rule amendment
Explanatory Note
Section 24 of the Customs and Excise Act, 1964, (the Act) provides for the supply of stores to foreign-going ships on pleasure cruises. Amendments to rules 24.01 and 24.04 in relation to the supply of duty free ship stores to pleasure cruise ships operating within the territorial waters of the Republic, are proposed:
 
  • Insertion in rule 24.01 of reference to the definition of "foreign-going ship" in rule 38A.01 of the Act to clarify that only "foreign–going ships" should benefit from the issuance of duty free stores regime.
  • Currently, rule 24.04 emphasizes the foreign registry of ships however; the aforementioned requirement has no relevance or impact on duty relief. Deletion of the foreign registry of ships requirement in rule 24.04 is proposed.
  • Rule 24.04 in its current form provides for exemptions from payment of duties on quantities of stores of specific tariff headings subject to the discretion of the Controller. The proposed amendment will remove the Controller’s discretion in respect of quantities of duty free stores.
     
Date published: 28 February 2020
​6 March 2020 ​Customs & Excise Act, 1964 Draft rule amendment
Explanatory Note
The rules for section 38 of the Customs and Excise Act, 1964 prescribe the forms to be used for the entry of goods imported and exported. These rules do not currently prescribe a "simplified" form in respect of the export of human remains, goods which in the opinion of the Commissioner are of no commercial value and goods of a value for duty purposes not exceeding R500, and on which no duty is payable. A "simplified" form, namely, the DA 306 is prescribed in the case of the importation of such goods (rule 38.03).

The proposed amendment to rule 38.03 therefore –
  • provides for a list of goods in respect of which a simplified form may be used on export; and
  • prescribes the “simplified” form DA 306A to be used for the entry of such goods for export.
     
Date published: 21 February 2020
​28 February 2020 Income Tax Act, 1962 Draft guide
Explanatory Note
The guide provides general guidance on building allowances available to owners and lessees of buildings. The Guide has been updated to take into account legislative amendments, clarification on certain aspects and the fact that some of the sections are now the subject of separate Interpretation Notes.

Date published: 14 January 2020
​28 February 2020 ​Customs & Excise Act, 1964 Draft rule amendment
Explanatory Note
Rebate item 621.00 provides for a rebate of duty on "spirits entered or deemed to have been entered for home consumption and payment of duty as contemplated in section 19A and its rules which have been exported by the licensee of a manufacturing warehouse (VMS) from stocks owned and stored by such licensee on premises outside such warehouse, subject to compliance with Note 8 to this section". Rebate item 621.16//104.21.03/02.01 in particular provides for denatured spirits exported from the VMS and as denaturing is entirely outside the activities permitted in a VMS it is suggested that this particular item be deleted.
 
Date published: 31 January 2020
​​7 February 2020 ​Customs & Excise Act, 1964 Draft notice and related forms
 
Explanatory Note
The Carbon Tax environmental levy account (DA 180), which is prescribed under rule 54FD.04, is published for another round of public comments. 

Date published: 17 January 2020
​17 January 2020 ​Carbon Tax Act, 2019 Draft regulations

Two draft regulations were published for comment:
Also see:
  • Summary – Draft Trade Exposure and GHG Emissions Intensity Benchmark Regulations
  • Media statement – Gazetting of the Carbon Offsets Regulations in terms of the Carbon Tax Act and related draft regulations for public comment
Explanatory Note
The National Treasury is seeking public comment into the Draft Regulations for Trade Exposure Allowance and the Draft Regulations for the Greenhouse Gas (GHG) Emissions Intensity Benchmarks.
"The National Treasury has published for public comment two further sets of regulations, namely Draft Regulations for the Trade Exposure Allowance for purposes of section 10 and Draft Regulations for the Greenhouse Gas (GHG) Emissions Intensity Benchmarks for purposes of section 11 in terms of section 19(b) and (a) of the Act, respectively," it said on Monday.
The Draft Regulations for the Trade Exposure Allowance gives effect to the sector based allowance and provides a list of sectors and subsectors and their respective trade exposure allowances. The regulations also outline an alternative approach to calculate the trade exposure allowance for companies.
In addition, the Trade Exposure Allowance, aims to assist companies that potentially face competitiveness pressures whilst the performance allowance seeks to encourage firms to reduce the carbon intensity of their production processes relative to their peers and promote the competitiveness of local products.
 
This follows on an extensive stakeholder consultation process on the design of the carbon tax and tax free-allowances since the publication of the Carbon Tax Policy Paper in 2013 and the 2015 version of the Carbon Tax bill.
 
Earlier this year, President Cyril Ramaphosa signed into law the Carbon Tax Act in May 2019. The Act came into effect from 1 June 2019.
 
The Carbon Offsets Regulations – which were developed jointly by the National Treasury, the Department of Minerals Resources and Energy and the Department of Environment, Forestry and Fisheries – were gazetted on Friday.
 
The regulations outline the eligibility criteria for offset projects and sets out the procedure for claiming the offset allowance.
 
Companies are allowed to use carbon offsets of either 5 or 10% of their total GHG emissions to reduce their tax liability.
 
On Monday, Treasury said it will ensure that the final regulations are gazetted by the first quarter of 2020. This is to align the regulations with the greenhouse emissions reporting period of the Department of Environment, Forestry and Fisheries.
 
"The carbon tax is an integral part of government’s package of policy measures to mitigate climate change as outlined in the National Climate Change Response Policy, National Development Plan and its Nationally Determined Contribution commitments under the 2015 Paris Agreement."
 
These said Treasury, provide for the introduction of the carbon tax in a phased manner at a relatively low rate initially. This will allow businesses time to make the necessary structural adjustments to their production processes and practices and to ensure a just transition to a low carbon, climate resilient economy.
 
"To ensure a cost effective transition, the design of the tax provides for the recycling of revenues through the electricity generation levy credit and energy efficiency savings tax incentive, and significant tax free-allowances of up to 95% of the total greenhouse gas emissions to firms, consisting of a basic tax free allowance of 60 % for direct, scope 1 emissions and allowances for sectors that are trade exposed up to a maximum of 10% and a performance allowance up to a maximum of 5%."

Date published: 4 December 2019
30 November 2019 ​Income Tax Act, 1962 Draft Binding General Ruling
  • Draft BGR – Determination of the threshold for applying the higher rate of donation tax
Explanatory Note
This BGR provides clarity on the rate of donations tax chargeable for the value of any property disposed of under a donation, and the determination of the R30 million threshold to be applied to such value. 
 
Date published: 17 September 2019
15 November 2019 ​​Income Tax Act, 1962 Draft Interpretation Note
Explanatory Note
This Note has been updated with amendments in the 2015, 2016, 2017 and 2018 Amendment Acts. Attention is drawn to the following main amendments to section 6quat on which readers may wish to comment:
  • Section 6quat(1B)(a) – see 5.5.1.
  • Section 6quat(1C) and (1D) – see 6. Section 6quat(1C) was amended at the same time section 6quin was deleted.
  • Section 6quat(4) – see 7.1.
In addition, owing to the deletion of section 6quin, the content relating to that section was deleted from the Note. A detailed discussion of section 6quin is contained in Issue 3 of this Note.
Readers will also note that the flow, structure and some of the wording used were amended throughout the document. The purpose of these changes was to improve standardisation and readability. The discussion on section 64N was deleted, since commentary in this regard is now contained in the Comprehensive Guide to Dividends Tax.
 
Date published: 12 September 2019
​​​4 November 2019 ​​Customs & Excise Act, 1964​ Draft Rule Amendment Notice
Explanatory Note:
New rules are proposed under section 110 of the Customs and Excise Act, 1964, that oblige the licensee of a customs and excise manufacturing warehouse for the manufacture of tobacco products to determine the quantities of all tobacco products manufactured in the warehouse by means of a functional product counter on each tobacco manufacturing machine.
The draft rules explain the physical requirements of the product counter system of which further details will be communicated by the Commissioner to the licensee in writing at least 30 days before the installation date. The licensee would need to further adhere to strict reporting requirements, but may request approval from the Commissioner for an alternative methodology if the prescribed product counter system cannot be used.
 
Date published: 2 October 2019
​1 November 2019 ​Customs & Excise Act, 1964 Draft Rule Amendment Notice
Explanatory Notes
Draft rules in terms of section 58A(5) of the Customs and Excise Act, 1964 are hereby published for public comment for purposes of the intended commencement of anti-forestalling measures.
11 October 2019 ​Customs & Excise Act, 1964 Draft Tariff Amendment Notices
27 September 2019 ​Customs & Excise Act, 1964 Draft Rule Amendment Notice
Explanatory Note
The insertion of draft rule 107A aims to ensure control of the supply chain in the tobacco industry. The rule provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Commissioner and keep records for purposes of inspection by the Commissioner.
​23 August 2019 ​National Legislation​​​
Draft Bills
Explanatory Note
The National Treasury and the South African Revenue Service (SARS) published, for public comment, the 2019 Draft Income Tax Amendment Bill, to give effect to Budget announcements on environmental tax incentives. 

The 2019 Draft Income Tax Amendment Bill contains environmental tax incentive announcements made in Chapter 4 the 2019 Budget Review that deal with the repeal of the exemption for certified emissions reductions as well as the extension of the of the energy efficiency savings incentives. The changes contained in the 2019 Draft Income Tax Amendment Bill provide the necessary legislative amendments required to implement the carbon tax, which came into effect on 1 June 2019.

This bill will, together with the 2019 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Draft Rates Bill), 2019 Draft Taxation Laws Amendment Bill (2019 Draft TLAB) and the 2019 Draft Tax Administration Laws Amendment Bill (2019 Draft TALAB), be tabled in Parliament after revising the bills to take account of public comments received, as well as any recommendations made following hearings on the draft bills in Parliament.
​28 June 2019 ​​Customs & Excise Act, 1964​​​ Draft Rule Amendment Notice
  • Draft rule amendment – Insertion of rules 107A - requirements in respect of tobacco leaf threshers
    • DA 185 – Application form – Registration / licensing of customs and excise clients
    • DA 185.4A17– Application form - Client Type 4A17 – Registered leaf threshing factory
Explanatory Note
The insertion of draft rule 107A aims to ensure control of the supply chain in the tobacco industry. The rule provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Commissioner and keep records for purposes of inspection by the Commissioner.
​24 June 2019 ​Tax Administration Act, 2011 Draft Common Reporting Standard Regulations
Explanatory Note:
Amended draft Regulations under section 257 of the Tax Administration Act, which provide for the implementation of the OECD Common Reporting Standard.​
14 June 2019 ​Customs & Excise Act, 1964​​​ Draft Rule Amendment Notice
  • Draft rule amendment – Rules under section 8, relating to the reporting of conveyances and goods ("RCG") for trains
Explanatory Note
Draft rules under section 8 of the Customs and Excise Act No. 91 of 1964, relating to the reporting of conveyances and goods ("RCG") for trains, and intended to amend 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 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.
​​20 May 2019
31 May 2019
 
Due date extended to 14 June 2019
​Customs & Excise Act, 1964​​​ Draft Tariff Amendment Notice
​29 March 2019 ​Schedules to the Excise Duty Act, 1964​, and Customs Control Act, 2014 Draft Schedules
As a consequence of the rewrite of the Customs and Excise Act, 1964, which will be replaced with the new Excise Duty Act, 1964 and the Customs Control Act, 2014, kindly find below documents for consideration and comments:
  1. Correlation Table
    This document is comprehensive and contains corresponding references and provisions for inclusions from the Schedule to the Customs and Excise Act, 91 of 1964 and the new draft Customs tariff

  2. The General Notes to the Excise Tariff

  3. Schedule No. 1 – Excise and Ad Valorem Duty

  4. Schedule No. 2 – Environmental Levy

  5. Schedule No. 3 – Fuel and Road Accident Levy

  6. Schedule No. 4 – Health Promotion Levy

  7. Schedule No. 5 – Ordinary Levy

  8. Schedule No. 6 – Rebates and Refunds of Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy

  9. Schedule No. 7 – Rebate on Import Duties

  10. Schedule No. 8 - Drawback and Refunds of Excise Duties on Imported Goods
9 March 2019
Due date extended to 29 March 2019
​Schedules to the Customs Control Act, 2014 and Customs Duty Act, 2014 Draft Schedules
As a consequence of the rewrite of the Customs and Excise Act, 1964, which will be replaced with the new Customs Duty Act, 2014 and the Customs Control Act, 2014, kindly find below documents for consideration and comments:
  1. Correlation table
    This document is comprehensive and contains a birds eye view of the tariff structure as contained in the 1964 Act, any changes to the wording and structure and where in the new Customs Tariff it can be found. The correlation is from the 1964 Act to the new Customs Tariff and the other way round.
  2. The General Notes to the Customs Tariff
    The General Notes are circulated without the rest of Schedule No. 1 as it will make the documents bulky and difficult to email. Schedule No. 1 contains a few changes that are elaborated on in the correlation table (see lines 60 to 73) but in essence it contains the current tariff code structure of the existing Schedule No. 1 Part 1 of the 1964 Act.
  3. Schedule No. 2 to the Custom Tariff
    Schedule No. 2 remained unchanged with the exception of the Notes which were previously repeated in each Part of Schedule No. 2. The changes are contained in the correlation table.
  4. Schedule No. 3 to the Customs Tariff
    Schedule No. 3 significantly changed and contains both the provisions of Schedule No. 3 and Schedule No. 4 to the 1964 Act. The Schedule is also aligned with the procedures as contained in the CDA and CCA. All the changes are elaborated upon in the correlation table.
  5. Schedule No. 4 to the Customs Tariff
    Schedule No. 4 contains the refund and drawback provisions previously contained in Schedule No. 5 to the 1964 Act. The Schedule now also makes provision for some refunds contained in Chapters 25 and 26 of the CCA that did not form part of the 1964 version of Schedule No. 5. All the changes and movement of items are elaborated upon in the correlation table.
  6. Schedule No. 5 to the Customs Tariff
    Schedule No. 5 contains the provisions for ordinary levy that previously resorted in Part 8 of Schedule No. 1 of the 1964 Act.
​8 March 2019 ​Tax Administration Act, 2011​ Draft Notice
  • Draft revised notice - Listing reportable​ and excluded arrangements​ in terms of
    sections 35(2) and 36(4)
Explanatory Note
The draft revised notice lists reportable​ and excluded arrangements​ in terms of sections 35(2) and 36(4)
6 ​March 2019
Due date extended to 8 March 2019
​Customs & Excise Act, 1964​ Draft Amendment Notice
Explanatory Note
New rules are proposed under section 110 of the Customs and Excise Act, 1964, that oblige the licensee of a customs and excise manufacturing warehouse for the manufacture of tobacco products to determine the quantities of all tobacco products manufactured in the warehouse by means of a functional product counter on each tobacco manufacturing machine.  The draft rules explain the physical requirements of the product counter system of which further details will be communicated by the Commissioner to the licensee in writing at least 30 days before the installation date.  The licensee would need to further adhere to strict reporting requirements, but may request approval from the Commissioner for an alternative methodology if the prescribed product counter system cannot be used.
8 October 2018 ​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.
​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.
​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.
​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”.​
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.
​​For sight only ​Customs Duty Act, 2014; and
Customs Control Act, 2014
Rule Amendments
Explanatory Note
Refer to the cover note​
​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.
 
NOTE:  See updated Draft  Documents published in October  2018 on the Treasury Website.
 
21 February 2018 ​Customs & Excise Act, 1964 Draft Amendment Notice
Explanatory Note
Refer to the cover note.
​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.
​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.

​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.

​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.
 
Last Updated: 12/10/2020 4:02 PM     print this page
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