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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 041​Income Tax Act, 1962​Dividends distributed by a foreign company
​​BCR 042​Income Tax Act, 1962​Preferred securities issued by a company registered in a foreign country
BCR 043​Income Tax Act, 1962​Antecedent cession of rights to future production rebate credit certificates (PRCCs)
BCR 044​Income Tax Act, 1962

Securities Transfer Tax Act, 2007
​Repurchase of non-redeemable, non-participating preference shares

BCR 044 has been replaced on 20 May 2014 to provide for textual changes and additions to the original ruling for improved clarity – refer to paragraph 5 and third bullet point in paragraph 7.
BCR 045​Income Tax Act, 1962​Post retirement medical aid benefits  
BCR 046​Income Tax Act, 1962​Dividends distributed by foreign companies 
BCR 047​Income Tax Act, 1962​Limitation of dividend exemption 
​BCR 048​Income Tax Act, 1962​Deductibility of expenditure incurred by a portfolio of a collective investment scheme in securities
BCR 049​​Income Tax Act, 1962​Deductibility of insurance premiums in respect of an environmental maintenance programme guarantee
BCR 050​Income Tax Act, 1962

Securities Transfer Tax Act, 2007
​Tax consequences for unitholders in a REIT of an amalgamation transaction, followed by an asset-for-share transaction

The reference to Company B has been corrected to Company A in the third bullet point in paragraph 7.
BCR 051​​Income Tax Act, 1962​Taxation of employees participating in a perpetuity employee share incentive scheme
BCR 052​Income Tax Act, 1962

Securities Transfer Tax Act, 2007
​Income tax and securities transfer tax consequences for the shareholders of a listed company following an unbundling transaction
BCR 053​Income Tax Act, 1962

Value-Added Tax Act, 1991
​Programme of activities of a clean development mechanism project
BCR 054​Income Tax Act, 1962​Employer-provided accommodation
BCR 055​Income Tax Act, 1962

Value-Added Tax Act, 1991
​Income tax and value-added tax consequences of a customer loyalty scheme
​Income Tax Act, 1962

Securities Transfer Tax Act, 2007
​Amalgamation of portfolios of declared hedge fund collective investment schemes with registered hedge fund collective investment schemes
BCR 057​Income Tax Act, 1962​Section 12J(2) deduction by partners
​​BCR 058​Income Tax Act, 1962​Consequences for beneficiaries on the unwinding of an employee share incentive scheme
​​​BCR 059​Income Tax Act, 1962​Asset for share transaction involving a foreign collective investment scheme
​​​​BCR 060​Income Tax Act, 1962​Consequences of an employee share trust disposing of the underlying shares and distributing the net proceeds to the beneficiaries


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