A Binding Class Ruling (BCR) is issued in response to an application and clarifies how the Commissioner would interpret and apply the provisions of the tax laws relating to a specific proposed transaction.

Applicable Legislation

  • Any tax Act administered by SARS as referred to in section 4 of the South African Revenue Service Act, 1997, excluding the Customs and Excise Act, 1964

Also see the Register of all Binding Class Rulings. (The register comprises an overview of all Binding Class Rulings, followed by Binding Class Rulings organised according to tax types.)

​NumberApplicable Legislation​Subject
BCR 001​Income Tax Act, 1962​Definition of equity instrument and restricted equity instrument
BCR 002​Income Tax Act, 1962​Expenditure incurred on corporate social investment programmes
BCR 003​Income Tax Act, 1962​Distribution of an actuarial surplus to former members and active members of a retirement fund
BCR 004​Income Tax Act, 1962

​Distributions made to participatory interest holders in a collective investment scheme which are reinvested with the scheme

The guidance contained in this ruling is affected by subsequent law changes.

BCR 005​Income Tax Act, 1962​Discretionary lump sum payments paid to pensioners in terms of an event contemplated by the rules of the pension fund
BCR 006​Income Tax Act, 1962

​Deduction of levy payments to be made by taxpayers for research and development expenditure incurred by another taxpayer on their behalf

Subsequent law changes clarified the guidance provided in this ruling. See section 11D(4).

BCR 007​Income Tax Act, 1962​Conversion of two public sector pension funds to a closed defined benefit fund and a contribution fund respectively
BCR 008 ​Income Tax Act, 1962

​Tax Consequences of proceeds of annuity policies purchased by employers to settle post-retirement medical aid subsidy obligations

BCR 008 has been replaced on 11 March 2015 – refer to par. 9

The principle confirmed in this ruling has been reviewed. This ruling should not be relied upon by anyone other than the Applicant(s)/class members to whom it was issued.

BCR 009​Income Tax Act, 1962​Foreign share buy-backs
BCR 010​Income Tax Act, 1962​Distribution of pension fund surplus to former members, pensioners and/or their beneficiaries
BCR 011​Income Tax Act, 1962

​Accrual of a conditional award and attendant tax implications

The guidance contained in this ruling is affected by subsequent law changes
BCR 012​Income Tax Act, 1962​Income tax implications attendant upon the vesting of an ‘equity instrument’ listed on a foreign stock exchange
BCR 013​Income Tax Act, 1962​Nature of dividend income when distribution by a discretionary trust to income beneficiaries by virtue of employment
BCR 014​Income Tax Act, 1962​Deductibility of interest incurred in respect of a loan entered into to purchase restricted equity instruments in a share purchase scheme
BCR 015​Income Tax Act, 1962​Repealed legislation and the application of section 12(1) of the Interpretation Act, 1957 (Act No. 33 of 1957)
BCR 016​Income Tax Act, 1962​Capital gains tax – Re-designation of preference shares
BCR 017​Income Tax Act, 1962​Creation of a permanent establishment if a foreign partnership carries on business in South Africa
BCR 018​Income Tax Act, 1962​Overseas incentive trips for employees with both business and private elements and related taxable benefit implications
BCR 019​Income Tax Act, 1962​Accrual date of a liquidation benefit
BCR 020​Income Tax Act, 1962​Transfer of pension and provident fund contributions from South African pension and provident funds to foreign pension and provident funds

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