Overview
The South African Revenue Service (SARS) is implementing an Advance Pricing Agreement (APA) programme to provide upfront tax certainty for qualifying cross-border related-party transactions. APAs help prevent disputes by confirming, in advance, the transfer pricing approach that SARS will apply to specified transactions.
An APA is a binding agreement between SARS and a taxpayer that sets out the transfer pricing method, key assumptions, and terms that will apply to specific international transactions within a multinational group, for an agreed period.
Where an APA applies, SARS and the taxpayer have clarity upfront on how the covered transactions will be assessed for transfer pricing, subject to the agreed terms and ongoing compliance requirements.
The APA legislation came into effect on 22 December 2023. The accompanying public notices to amplify the APA legislation were issued on 7 August 2026. SARS is implementing a phased approach to APA’s in order to allow for the building of technical capability. During the pilot phase SARS will admit a limited number of applications into the programme as well as limit the nature of transactions that will be accepted into the programme.
At a Glance Summary of what the APA programme is, who it is for, and what to do next | |
What is an APA? | A binding agreement that confirms, in advance, the transfer pricing approach that SARS will apply to specific cross-border related-party transactions. |
Why it matters | Provide upfront certainty, helps prevent downstream disputes, and support a stable and predictable tax environment. |
Who should consider APAs? | South African tax resident taxpayers who are tax compliant, party to qualifying cross-border related-party transactions and require transfer pricing tax certainty. Furthermore, the entity making the application must have a standalone turnover exceeding R10 billion in the year of assessment preceding the year in which the APA application process is initiated. |
Covered transactions | During the pilot phase, SARS will consider affected transactions relating to distribution, manufacturing or intragroup services. For each year covered, the expected transaction value must exceed R1billion for distribution or manufacturing functions or R300million for intragroup services. Financial assistance and intellectual property related transactions will be excluded for purposes of the pilot programme. |
When? | Pilot phase to start on 1 September 2026. |
What to do next | Refer to the public notices together with the external guide and follow the guidance on eligibility, fees, consultations, and application requirements. |
SARS’ Strategic Objective for Enacting APAs
The APA programme aligns with international best practice, including the OECD/G20 BEPS Action 14 recommendations on dispute prevention and resolution, and guidance from the Davis Tax Committee. It supports legitimate trade by giving qualifying taxpayers greater certainty on the transfer pricing treatment of eligible transactions.
APAs provide certainty on transfer pricing arrangements in advance, reducing the likelihood of disputes and the associated costs of resolution.
In addition, the APA programme complements SARS’s existing advance tax ruling framework by extending upfront certainty to transactions that would otherwise fall outside the scope of advance rulings.
Key Components of the APA Programme
Interested taxpayers should refer to the public notices and use the dedicated email channels when the pilot phase opens.
The public notices set out the pilot requirements and application process, including the following:
- Eligibility criteria
- Applicable fees
- Pre-application consultations
- Required application content
- Procedures for amending or withdrawing applications
- Criteria for rejecting applications
- Processing protocols
- Finalising APAs
- Annual compliance reporting
- Renewal
- Termination procedures
- Record-keeping requirements
How to Apply
- Access the Advance Pricing Agreement (APA) Pre-application Form here.
- Access the Advance Pricing Agreement (APA) Application Form here.
Completed forms should be sent to [email protected]
Commitment to Responsible Revenue Stewardship
The APA programme reflects SARS’s commitment to responsible stewardship of public revenue. By supporting a stable, transparent, and predictable environment for cross-border investment, the programme strengthens fairness, certainty, and confidence in the tax system.
Useful Information
- OECD Forum on Tax Administration: Bilateral Advance Pricing Arrangement Manual
- United Nations: Bilateral Advance Pricing Agreement/Arrangement Programmes – Frequently Asked Questions
- Public Notices:
- Notice 7788, published in terms of section 76C, prescribing the persons eligible to apply to the Commissioner for a DTA advance pricing agreement
- Notice 7787, published in terms of section 76D, prescribing the fees payable by an applicant in an application for a DTA advance pricing agreement
- Notice 7789, published in terms of section 76I(b), prescribing the additional requirements that will lead to the rejection of an application for a DTA advance pricing agreement
- Notice 7790, published in terms of section 76J(1), prescribing the requirements for processing an application for a DTA advance pricing agreement
- Notice 7791, published in terms of section 76J(3), prescribing the information to be contained in a preliminary DTA advance pricing agreement under that section
- Notice 7792, published in terms of section 76P, prescribing the procedures and guidelines for the implementation and operation of the DTA advance pricing agreement system
- Advance Pricing Agreement (APA) External Guide
Need Help?
For APA-related queries, contact the APA Support Team at [email protected].
