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 identity of commentators and their comments will be collected and may be disclosed publicly, either in full or in summary, as legal obligation dictates or is necessary for SARS to properly perform its duties.

The draft documents are categorised according to their due date for comment. Comments may be emailed to the address indicated in the last column.

Latest draft uploaded for comment Look under: 4 February 2022

Due date for comments	Legislation Category	Description	Send comments to
4 February 2022	Customs & Excise Act, 1964	Draft Amendment to Rules Draft amendment to the rules under section 64E – accreditation Explanatory Note The purpose of the draft Notice is twofold. Firstly, it proposes to amend rule 64E.19 of the rules under section 64E that came into effect on 23 July 2021. The amendment clarifies the validity period of accredited client statuses converted from Level 2 (as they were under the repealed rules) to Level 1 (under the current rules). The amendment also provides for the updating of information on request, in order to enable such converted clients to consent to information sharing for purposes of mutual recognition or co-ordinated interventions. Secondly, a substantive provision of the Notice proposes to provide for a dispensation to clarify and legally regulate the position regarding accredited client statuses (granted under the repealed rules), that expired after the Covid-19 “lockdown” period up to 23 July 2021 (when the new rules came into effect). As determined by examining statuses granted under the repealed rules, the earliest date after the “lockdown” on which the affected statuses would have expired in terms of the repealed rules is 8 May 2020. The expiry date for purposes of the dispensation created by item 2 of the Notice is however calculated taking into account section 7(2)(a)(cc) of the DMTRAA, 2020, which in effect extends the date of 8 May 2020 to 12 June 2020. Date published: 14 January 2022	C&[email protected]

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4 February 2022

Customs & Excise Act, 1964

Draft Amendment to Rules

Draft amendment to the rules under section 64E – accreditation

Explanatory Note
The purpose of the draft Notice is twofold. Firstly, it proposes to amend rule 64E.19 of the rules under section 64E that came into effect on 23 July 2021. The amendment clarifies the validity period of accredited client statuses converted from Level 2 (as they were under the repealed rules) to Level 1 (under the current rules). The amendment also provides for the updating of information on request, in order to enable such converted clients to consent to information sharing for purposes of mutual recognition or co-ordinated interventions.

Secondly, a substantive provision of the Notice proposes to provide for a dispensation to clarify and legally regulate the position regarding accredited client statuses (granted under the repealed rules), that expired after the Covid-19 “lockdown” period up to 23 July 2021 (when the new rules came into effect). As determined by examining statuses granted under the repealed rules, the earliest date after the “lockdown” on which the affected statuses would have expired in terms of the repealed rules is 8 May 2020. The expiry date for purposes of the dispensation created by item 2 of the Notice is however calculated taking into account section 7(2)(a)(cc) of the DMTRAA, 2020, which in effect extends the date of 8 May 2020 to 12 June 2020.

Date published: 14 January 2022

C&[email protected]

Sorry, you've missed the due date for comment on the following drafts. These drafts will be removed in due course.

Due date was for:	Legislation Category	Type of Draft & Description
14 January 2022	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note 28 (Issue 3) – Deductions of home office expenses incurred by persons in employment or persons holding and office Briefing note Explanatory Note Second Draft of Interpretation Note (IN) 28 is hereby published for Public Comment. This Note provides clarity the deductibility of home office expenses incurred by persons in employment or persons holding an office. During May 2021, an update to IN 28 was published for public comment. The Note has been updated to provide further clarity in response to comments submitted. In addition, an issue addressing the deductibility of interest incurred in connection with a home office has been considered and addressed. Date published: 15 November 2021
14 January 2022	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Extraordinary dividends treated as income or proceeds on disposal of certain shares Explanatory Note This draft interpretation note provides guidance on the interpretation and application of section 22B and paragraph 43A relating to the income tax treatment of extraordinary dividends on certain disposals and deemed disposals of shares by a company to prevent so-called “dividend stripping”. Date published: 3 November 2021
10 December 2021	Income Tax Act, 1962	Draft Guide Draft Guide to the Voluntary Disclosure Programme Explanatory Note The voluntary disclosure programme (VDP) was introduced as a permanent measure to increase voluntary compliance in the interest of enhanced tax compliance, good management of the tax system and the best use of the SARS resources. The VDP is intended to encourage taxpayers to voluntarily disclose tax defaults. This draft guide provides general guidance on the VDP. Date published: 20 October 2021
8 December 2021	Customs & Excise Act, 1964	Draft Schedule Amendment Draft Amendment to Part 1 of Schedule No. 1 – Super fine maize meal Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note Draft amendment is proposed in Part 1 of Schedule No. 1 to the Customs and Excise Act as follows: Insert additional Note 2 in Chapter 11; Substitute tariff subheading 1102.20; and Insert 8-digit tariff subheadings 20.10 and 1102.20.90, to provide for Super fine maize meal. The Minister of Finance announced in the 2021 Budget Review, under Annexure C, that super fine maize meal will also qualify to be supplied with value-added tax at the rate of zero per cent. Date published: 10 November 2021
3 December 2021	National Legislation	Draft Notice Technical Tax Proposals for 2022 Budget review proposals Explanatory Note Inviting Technical Tax Proposals for Annexure C of the 2022 Budget Review Proposals. The National Treasury invites taxpayers, tax practitioners and members of the public to submit any technical proposals to improve or correct current tax legislation, including the closing of loopholes and technical matters applicable to the current tax legislation that require correction. Date published: 16 November 2021
3 December 2021	Employment Tax Incentive Act, 2013	Draft Interpretation Note Draft Interpretation Note – Meaning of “employee” for purposes of the Employment Tax Incentive Act Explanatory Note This draft interpretation note provides clarity on the interpretation and application of the definition of “employee” in section 1(1) of the Employment Tax Incentive (ETI) Act. The scope of this Note has been restricted to arrangements entered into by parties, typically as part of a composite arrangement, in an attempt to claim the ETI for persons not meeting the definition of “employee”, specifically arrangements involving learning institutions. Date published: 2 November 2021
3 December 2021	Customs & Excise Act, 1964	Draft Amendments to Forms Substitution in item 202.00 of the Schedule to the Rules for the DA 260 tobacco products excise accounts DA 260 – Tobacco products (SOS) DA 260 – Tobacco products (VM) Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note Excise Duties are payable on tobacco products on the DA 260 accounts for manufacturing (VM) and special storage (SOS) warehouses.. As a consequence of the implementation of HS 2022, the current DA 260 tobacco products excise accounts must be amended to reflect certain deletions and additions of fields. Date published: 26 November 2021
19 November 2021	Income Tax Act, 1962	Draft Guide Draft Tax Exemption Guide for Small Business Funding Entities Explanatory Note This guide provides general guidance on the approval of small business funding entities under section 30C, and taxation under section 10(1)(cQ). An entity will enjoy preferential tax treatment under section 10(1)(cQ) after it has been granted approval by the Commissioner under section 30C(1), and continues to comply with the relevant prescribed requirements as set out in the Act. Date published: 16 September 2021
7 November 2021	Customs & Excise Act, 1964	Draft Schedule Amendment Draft Amendment to Part 1 of Schedule No. 1 – Super fine maize meal Explanatory Note The draft amendment is proposed in Part 1 of Schedule No. 1 to the Customs and Excise Act as follows: Insert additional Note 2 in Chapter 11; and Insert tariff subheading 1101.00.40, to provide for Super fine maize meal The Minister of Finance announced in the 2021 Budget Review, under Annexure C, that super fine maize meal will also qualify to be supplied with value-added tax at the rate of zero per cent. Date published: 6 October 2021
5 November 2021	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Associations – Funding Requirement Explanatory Note This Note, which is being published for a second round of comment, provides guidance on the interpretation and application of the “funding” requirement contemplated in section 30B(2)(b)(ix), requiring that substantially the whole of an entity’s funding must be derived from its annual or other long-term members or from an appropriation by the government. Date published: 16 September 2021
5 November 2021	Customs & Excise Act, 1964	Draft Amendment to Rules Draft amendment to rules under section 120(1)(mC) – Insertion of rule to advance foreign exchange import payments Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note The Advance Import Payment (AIP) project is one of Customs’ modernisation initiatives. This project aims to bring together data from SARS, Authorised Dealers and the South African Reserve Bank (SARB) to increase regulatory controls relating to advance foreign exchange payments in order to prevent illicit financial flows and combat customs valuation fraud associated therewith. Proposed rules under section 120(1)(mC) of the Act have been inserted providing for – procedures for notifying Commissioner of intention to submit application for advance payment to authorised dealer; issuing of advance payment notice (APN) reference number; requirements for authorised dealers; and communication through eFiling for purposes of advance payments. Date published: 15 October 2021
29 October 2021	Tax Administration Act, 2011	Draft Interpretation Note Draft Interpretation Note – Reduced Assessments: Meaning of “Readily Apparent Undisputed Error” Explanatory Note This draft interpretation note deals with the interpretation of the phrase “readily apparent undisputed error” in section 93(1)(d) of the Tax Administration Act for purpose of reduced assessments. Date published: 16 August 2021
8 October 2021	Income Tax Act, 1962	Draft Guide Draft Tax Exemption Guide for Companies Wholly Owned by Institutions, Boards or Bodies Explanatory Note Section 10(1)(cA)(ii) provides for an absolute exemption from income tax of the receipts and accruals of any company all the shares of which are held by any institution, board or body provided the operations of such company are ancillary or complementary to the object of the institution, board or body. This draft Guide discusses the requirements for the exemption to apply. Date published: 6 August 2021
8 October 2021	Income Tax Act, 1962	Draft Guide Draft Tax Exemption Guide for Institutions, Boards or Bodies Explanatory Note Section 10(1)(cA)(i) provide an absolute exemption from income tax of the receipts and accruals of any institution, board or body established by or under any law engaged in specified prescribed activities. This draft guide discusses the requirements for the exemption to apply. Date published: 6 August 2021
3 October 2021	Customs & Excise Act, 1964	Draft Amendment to Rules Draft amendment to rules under sections 19, 60 and 120 – CCTV cameras Explanatory Note The draft rules inserted under section 19 of the Customs and Excise Act relates to the requirements in respect of monitoring of certain customs and excise warehouses for the manufacture or the storage of tobacco products through CCTV cameras. Date Published: 3 September 2021
27 September 2021	Customs & Excise Act, 1964	Draft Schedule Amendment Draft amendment to Note in Part 1C of Schedule No. 6 Explanatory Note The draft amendment is proposed in Note 6 in Part 1C of Schedule No. 6 to the Customs and Excise Act as follows:- Note 6(a)(i) is being amended in order to limit the return to the warehouse where the goods were originally manufactured. Note 6(b)(i)(bb) is amended to correct the grammar to read “unpacked, where applicable, and transferred to [and mixed to] and mixed with stocks of materials for reprocessing. Note 6(d) is amended in order to substitute the reference to the rules for section 19A to read as section 20. Date Published: 9 September 2021
20 September 2021	Customs & Excise Act, 1964	Draft Excise Forms Draft DA 185.4B3 – Storage warehouse Draft DA 185.4B4 – Special storage warehouse Explanatory Note The DA 185.4B3 and DA 185.4B4 forms are used by clients for the licensing of storage and special storage warehouses. The forms have been amended to indicate separate tick boxes in respect of the business types for wine, vermouth and other fermented beverages. Date published: 6 September 2021
10 September 2021	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Disposal of Assets by Deceased Person, Deceased Estate and Transfer of Assets between Spouses Explanatory Note This draft IN deals with the provisions of sections 9HA and 9HB and some of the provisions of section 25 applicable to the deemed disposal of assets by a deceased person, a deceased estate and the transfer of assets between spouses. Date published: 6 August 2021
3 September 2021	Income Tax Act, 1962	Draft Binding General Ruling Draft Binding General Ruling – Disqualification as a Qualifying Company under Section 12R(4)(b) Explanatory Note This BGR provides guidance on the interpretation and application of the excluded activities under section 12R(4)(b) conducted by a qualifying company located within an Special Economic Zone as defined Date published: 3 June 2021
28 August 2021	National Legislation	Draft Bills Media Statement – Publication of the 2021 Draft Tax Bills 2021 Draft Rates Rates and Monetary Amounts and Amendment of Revenue Laws Bill 2021 Draft Taxation Laws Amendment Bill (TLAB) 2021 Draft Explanatory Memorandum to the 2021 Draft TLAB 2021 Draft Tax Administration Laws Amendment Bill (TALAB) 2021 Draft Memorandum on the Objects of the 2021 Draft TALAB Explanatory Note The National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the 2021 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2021 draft Rates Bill), the 2021 draft Taxation Laws Amendment Bill (2021 draft TLAB) and the 2021 draft Tax Administration Laws Amendment Bill (2021 draft TALAB). These draft tax bills contain tax proposals made in the 2021 Budget on 24 February 2021. The 2021 tax bills will be introduced in Parliament later this year. Date published: 28 July 2021
28 August 2021	National Legislation	Draft Bills and Explanatory Notes Media statement – Publication of the second batch of the 2021 Draft TLAB Second Batch of the draft Taxation Laws Amendment Bill (TLAB) Second Batch of the draft Tax Administration Laws Amendment Bill (TALAB) Draft Explanatory Notes on the Emergency Tax Measures Explanatory Note Following the announcement by the Minister of Finance on 28 July 2021 on the emergency tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 25 July 2021, which was in response to the continuing Covid-19 pandemic and recent unrest in the country that resulted in the destruction of businesses, the National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the second batch of the 2021 Draft Taxation Laws Amendment Bill and 2021 Draft Tax Administration Laws Amendment Bill (TALAB). The second batch of draft tax bills contains emergency tax measures taking effect on 1 August 2021 and seek to make amendments in the Disaster Management Tax Relief Act, 2020 and Disaster Management Tax Relief Administration Act, 2020. These measures are over and above the tax proposals made in the 2021 Budget on 24 February 2021, which were included in the initial batch of the 2021 draft tax bills, published for public comment on 28 July 2021 (available below). Date published: 12 August 2021
25 August 2021	Customs & Excise Act, 1964	Draft Amendments to Rules Draft amendments to rule under sections 39 and 120 – Clearing Instructions Explanatory Note Rule 39.01 provides for importer’s clearing instructions as prescribed in paragraph 39(1)(c) of the Customs and Excise Act. A first draft of the rule amendment included specific information that must be reflected by the principal. The first draft amendment was published for comment from 25 May – 15 June 2020. A second draft was published for comment from 30 July – 14 August 2020. After consideration of comments received during the previous rounds, a third draft is being published for comment. Date published: 4 August 2021
11 August 2021	Tax Administration Act, 2011	Draft Notice Draft Notice in terms of section 210(2) of Tax Administration Act – Outstanding Return Individuals Explanatory Note – Non-compliance Penalties Date published: 28 July 2021
31 July 2021	Income Tax Act, 1962	Draft Binding General Ruling Draft Binding General Ruling – Purchase of different types of annuities at retirement Explanatory Note This BGR confirms that, for income tax purposes, any annuity purchased or provided by any retirement fund must be compulsory, non-commutable, payable for and based on the lifetime of the retiring member. This means that the annuity may not be transferred, assigned, reduced, hypothecated or attached by creditors as contemplated by the provisions to sections 37A and 37B of the Pension Funds Act. Date published: 8 June 2021
30 July 2021	Customs & Excise Act, 1964	Harmonized System 2022 Explanatory Memorandum Draft amendment to Notes to Part 1 of Schedule No.1 to implement HS 2022 Draft amendment to Part 1 of Schedule No.1 to implement HS 2022 Draft amendment to Part 2A of Schedule No.1 as a consequence to the amendment in Part 1 of Schedule No. 1 in order to implement HS 2022 Draft amendment to Part 2B of Schedule No.1 as a consequence to the amendment in Part 1 of Schedule No. 1 in order to implement HS 2022 Draft amendment to Part 3E of Schedule No.1 as a consequence to the amendment in Part 1 of Schedule No. 1 in order to implement HS 2022 Draft amendment of Part 1 of Schedule No. 3 as a consequence to the amendment in Part 1 of Schedule No. 1 in order to implement HS 2022 Draft amendment to Part 2 of Schedule No. 4 as a consequence to the amendment in Part 1 of Schedule No. 1 in order to implement HS 2022 Draft HS 2022 Correlation table – Part 1 of Schedule No. 1 Draft HS 2022 Correlation table – Consequential Amendments Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note The changes in HS 2022 reflect the amendments to the nomenclature appended to the International Convention on the Harmonised Commodity Description and Coding System (HS Convention), which were accepted as a result of the Customs Co-operation Council’s (now the World Customs Organisation) recommendations of 28 June 2019. These amendments will enter into force on 1 January 2022. Complementary amendments to the HS Nomenclature 2022 have been accepted as a result of the Council Recommendation of 25 June 2020. As a signatory to the HS Convention, South Africa implements the amendments in terms of section 48(1)(c) of the Customs and Excise Act, 1964. This is the seventh major revision of the HS since it had been approved by the Council in 1983 and implemented in 1988 and includes, on an international level, 351 sets of amendments. The HS 2022 amendments and correlation table (Schedule No. 1) up to a 6-digit level as well as the complementary amendments can be viewed on the WCO website at http://www.wcoomd.org Date published: 8 June 2021
23 July 2021	Customs & Excise Act, 1964	Draft Excise Forms Automotive Production and Development Programme (APDP) Draft DA 199 Draft DA 199.01 Draft DA 199.02 Draft DA 199.02A Draft DA 199.03 Draft DA 199.04A Draft DA 199.04B Draft DA 199.06A Draft DA 199.06B Draft DA 199.10 Draft DA 199.11 Draft DA 199.12 Draft DA 199.13 Draft DA 199.14 Draft DA 199.15 Draft DA 199.16 Draft DA 199.17 Draft DA 199.18 Draft DA 199.20 Draft DA 199.21 Draft DA 199.22 Draft DA 199.23 Draft DA 199.24 Draft DA 199.25 Draft DA 199A Please record your comments on the Comment Sheet. Explanatory Note Clients who participate in the Automotive Production and Development Programme (APDP) are required to complete APDP quarterly accounts. The draft forms reflect consequential amendments (red) for rebate item 317.04 of Schedule No. 3 to the Customs and Excise Act of 1964. Date published: 2 July 2021
22 July 2021	Customs & Excise Act, 1964	Draft Excise Form Draft DA 185 Please record your comments on the Comment Sheet. Explanatory Note Form DA 185 is the application form used for the registration and licensing of customs and excise clients. The field dealing with documents in support of an application has been amended to include the submission of any other monthly account or statement, as may be appropriate in the circumstances, to confirm physical address of the applicant. Date published: 2 July 2021
7 July 2021	Customs & Excise Act, 1964	Draft Amendment to Rules Draft amendment to the rules under sections 77H and 120 – Internal appeals Please record your comments on the Comment Sheet. Explanatory Note Refer to Cover Note Date published: 24 June 2021
7 July 2021	Customs & Excise Act	Draft Amendments to Rules Draft amendment to the rules under sections 59A, 76 and 120 – Exporter Tax Explanatory Note The draft Notice provides for – the amendment to rule 59A.03 to exclude exporters of scrap metal from making use of registration code 70707070; the amendment to the heading of rule 76 to include the refund of duty for certain exported goods; and the amendment to rule 76.04 which has the effect that a voucher of correction cannot be used as an application for a refund of export duty. Please record your comments on the Comment Sheet. Date published: 24 June 2021
25 June 2021	Income Tax Act, 1962	Draft Public Notice Draft Public Notice – Electronic form of record keeping in terms of section 30(1)(b) of the Tax Administration Act, 2011 Draft Form – Electronic form of record keeping Explanatory Note The draft notice prescribes the electronic form in which records, books of account and documents that are required to be kept or retained in terms of section 29 of the Tax Administration Act, 2011, must be held. Date published: 3 June 2021
14 June 2021	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note 28 (Issue 3) – Deductions of home office expenses incurred by persons in employment or persons holding an office Explanatory Note This Note provides clarity on the deductibility of home office expenses incurred by persons in employment or persons holding an office. This Note incorporates the changes made to section 23(m) by section 56(1) of Taxation Laws Amendment Act 31 of 2013, and section 35(1) of Taxation Laws Amendment Act 17 of 2017. Date published: 14 March 2021
4 June 2021	Customs & Excise Act, 1964	Draft Amendments to Rules Draft amendment to rules under sections 59A and 60 – Registration and Licensing DA 8 – Application for registration to submit reporting documents DA 185.4A3 – Registration Client Type 4A3 – Rebate user (Schedule No’s 3, 4 and 6) DA 185.4B9 – Licensing Client Type 4B9 – Storage warehouse (Customs Controlled Area Enterprise) – (Sections 19A, 21, 21A, 60, 61 and Rule 21A.10) DA 185.4B10 – Licensing Client Type 4B10 – Manufacturing warehouse (Customs Controlled Area Enterprise) – (Sections 19A, 21A, 27, 59A and Rule 21A.10) DA 185.4B14 – Licensing Client Type 4B14 – Degrouping Depot – (Section 64G and its rules and item 850.00 of Schedule No. 8) DA 185.4B16 – Licensing Client Type 4B16 – Container Depot Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note Refer to Cover Note in relation to proposed registration and licensing amendments Date published: 21 May 2021
31 May 2021	Income Tax Act, 1962	Draft List List of Qualifying Physical Impairment or Disability Expenses (Draft for Public Comment) Explanatory Note The List of Qualifying Physical Impairment or Disability Expenses, has been updated and published for public comment, following consultation with stakeholders. The public comments received will be limited to only the 3 items that were amended, namely, numbers 7, 8 and 9 under item F. SERVICES. Any comments received for other aspects will be noted and considered at a later stage. Date published: 19 May 2021
28 May 2021	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Deduction of medical lump sum payments Explanatory Note This Note provides guidance on the interpretation and application of section 12M which relates to the deductibility of a lump sum amount paid by a taxpayer to or in respect of a former employee or dependants of that former employee for purposes of covering post-retirement medical benefits. Date published: 23 March 2021
21 May 2021	Customs & Excise Act, 1964	Draft Amendments to Rules Draft amendment to rules under sections 18 and 120 – Substitution rule 18.14: Obtaining permission for carrying out activities of goods in transit through the Republic Explanatory Note The draft amendment of rules under section 18(13)(b) was published for comment on 25 January 2021. This amendment provided for the process of obtaining permission for the carrying out of activities for the purpose of preservation or maintenance, sorting and re-packing of goods in transit through the Republic. Comments received were reviewed and changes were made to the draft where necessary. The new draft, which is now being published for a second round of comment, includes all the activities listed in section 18(13)(b)(i). Provision is made for obtaining permission in respect of the following activities in addition to the activities contained in the first draft: Inspection of the goods Cleaning the goods Tallying the goods Sealing the goods or the transport unit Exercising control over the movement of goods into, in and from such place Any other activity that may be necessary to prepare and forward the goods for transit. Provision is further made for the process of obtaining a standing permission to carry out relevant activities in respect of goods in transit. Please record your comments on the Customs & Excise Comment Sheet. Date published: 7 May 2021
17 May 2021	Customs & Excise Act, 1964	Draft Amendments to Rules Draft amendments to rules under section 49 – SACUM-EPA tariff rate quotas Explanatory Note This Note provides for a transitional arrangement suspending the requirement for an import or export permit issued by the Department of Agriculture, Land Reform and Rural Development for SACUM-EPA tariff rate quotas from the date of implementation until 31 December 2021. This arrangement is in place to afford the DALRRD an opportunity to develop and prepare the required permit system to administer SACUM-EPA tariff rate quotas as from 1 January 2022 or after such further period as may be agreed and published in the SARS website. Date published: 22 April 2021
30 April 2021	Income Tax Act, 1962	Draft Interpretation Note Draft interpretation note –Deductions in respect of improvements to land or buildings not owned by a taxpayer Explanatory Note: This Note provides guidance on the interpretation and application of – section 12N, which facilitates allowances under specified sections of the Act for improvements made to land or buildings not owned by a taxpayer but over which the taxpayer holds a right of use or occupation. The improvement must be effected under a PPP, a lease agreement with the state or certain other tax-exempt statutory bodies and the state or that body owns the land or building, or under the Independent Power Producer Procurement Programme; and section 12NA, which deals with deductions for improvements effected under a PPP by a person to land or to a building over which the state holds the right of use or occupation. Date published: 1 March 2021
30 April 2021	Customs & Excise Act, 1964	Draft Schedules Amendments Explanatory Memorandum Draft Notes to Part 1 of Schedule No.1 to implement HS 2022 Draft amendment of Part 1 of Schedule No.1 to implement HS 2022 Explanatory Note The changes in HS 2022 reflect the amendments to the nomenclature appended to the International Convention on the Harmonised Commodity Description and Coding System (HS Convention), which were accepted as a result of the Customs Co-operation Council’s (now the World Customs Organisation) recommendations of 28 June 2019. These amendments will enter into force on 1 January 2022. Complementary amendments to the HS Nomenclature 2022 have been accepted as a result of the Council Recommendation of 25 June 2020. As a signatory to the HS Convention, South Africa implements the amendments in terms of section 48(1)(c) of the Customs and Excise Act, 1964. This is the seventh major revision of the HS since it had been approved by the Council in 1983 and implemented in 1988 and includes, on an international level, 351 sets of amendments. The HS 2022 amendments and correlation table (Schedule No. 1) up to a 6-digit level as well as the complementary amendments can be viewed on the WCO website at http://www.wcoomd.org To give effect to this proposal the draft amendments are contained in the draft amendments as follows: Draft amended Notes to Part 1 of Schedule No.1 to implement HS 2022 Part 1 of Schedule No. 1 is amended to give effect to the HS 2022 amendments Date published: 26 February 2021
26 April 2021	Customs & Excise Act, 1964	Draft Rule Amendments Draft amendments to rules under section 38 – SACU UCR Botswana and Namibia 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. The Southern African Customs Union (SACU) UCR aims to facilitate the exchange of Customs information between SACU Member States. The Customs Administration of Botswana and Namibia is now being added to the list of countries participating in the SACU UCR implementation. Date published: 12 April 2021
23 April 2021	Income Tax Act, 1962	Draft Interpretation Note Draft IN 59 (Issue 2) – Tax treatment of the receipt or accrual of government grants Explanatory Note: This Note has been updated for significant legislative amendments and deals with – the tax consequences of the receipt or accrual of government grants; the exemptions from normal tax applicable to government grants; and anti-double-dipping rules applicable to expenditure funded by such grants. The primary sections dealt with are section 1(1) – definition of “gross income”, section 12P and the Eleventh Schedule.” Date published: 26 February 2021
Due date extended to 16 April 2021 6 April 2021	Customs & Excise Act, 1964	Draft Rule Amendments Draft amendments to rules under sections 64E and 120 – Accreditation Explanatory Note: See Explanatory Note. Date published: 19 March 2021
9 April 2021	Customs & Excise Act, 1964	Draft Rule Amendments Draft amendment of rules under sections 76 and 120 – Deletion of rule 76.02 Explanatory Note The deletion of rule 76.02 is a consequential amendment to the implementation of the electronic submission of the application (voucher of correction) for general refunds. Date published: 24 March 2021
9 April 2021	National Legislation	Draft Notices and Bill Media statement – 2021 Draft Rates Bill, Draft Notices and invitation to make submissions on sunset dates of certain tax incentives Draft bill – 2021 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill – 24 February 2021 Draft notice – Amounts for purposes of definition of retirement annuity funds – 24 February 2021 Draft notice – UIF remuneration limit – (updated 26 February 2021) Explanatory Note: National Treasury and SARS hereby invite comments in writing on the 2021 Draft Rates Bill, the draft Notice on Regulations on amounts for purposes of definition of retirement funds, the draft Notice on Regulations on Unemployment Insurance Fund remuneration limit. The 2021 draft Financial Sector Levies Bill is also available for comment. See the media statement for more information. Date published: 24 February 2021
31 March 2021	Customs & Excise Act, 1964	Draft Rule Amendments Draft amendments to rules under sections 59A, 60 and 120 – Registration and Licensing DA 185.4A11 – Registration Client Type 4A12 – Special Economic Zone (SEZ) and/or designation of a Customs Controlled Area (CCA) (sections 21A, 59 and rule 21A.04) DA 185.4B3 – Storage Warehouse (section 19 and the rules thereto) DA 185.4B4 – Special Storage Warehouse (sections 19A and 21 and the rules thereto) DA 185.4B15 – Searching wreck or searching for wreck (section 64C and rule 64C.01) Please record your comments on the Customs & Excise Comment Sheet. Explanatory Note See Cover Note in relation to proposed registration and licensing amendments. Date published: 26 March 2021
31 March 2021	Customs & Excise Act, 1964	Draft Excise Forms DA 260 tobacco products (VM) DA 260 tobacco products (SOS) Explanatory Note Excise Duties are payable by manufacturers of tobacco products on the DA 260 account. As a result of Budget 2021 proposals in respect of heated tobacco products, the current DA 260 excise accounts must be amended to reflect certain additional fields. Date published: 17 March 2021
24 March 2021	Customs & Excise Act, 1964	Draft Rule and Schedule Amendments in respect of the diesel Refund Scheme Rules under sections 75A, 59A, 119A and 120, and the following forms: Form DA 185 – Application form: Registration / Licensing of Customs and Excise clients Form DA 185.4A18 – Registration client type 4A18 – Seller of eligible purchases of distillate fuel to diesel refund users Form DA 185.4A19 – Registration client type 4A19 – Diesel refund user under the diesel refund scheme Form DSL201 – Diesel refund return Note 6 to Part 3 of Schedule No. 6 (logbook templates referenced in Note 6 will be published for comment at a future date) Please record your comments on the Diesel Refund Comment Sheet. Explanatory Note Second drafts of diesel refund rules, forms and notes to the Customs and Excise Act, 1964, are hereby published for public comment. The updated draft amendments incorporate relevant comments and technical inputs received from various stakeholders in response to the first drafts that were published for comment in 2020. These proposed reforms to the diesel refund administration may, where necessary, be informed by industry-specific consultations during the year. Date published: 9 February 2021
5 February 2021	Income Tax Act, 1962	Draft Interpretation Note Draft IN 91 (Issue 2) – Concession or compromise of a debt Explanatory Note This Draft Note provides guidance on the interpretation and application of section 19 and paragraph 12A which deal with the concession or compromise of debt in respect of years of assessment commencing on or after 1 January 2018. The information in this Note is based on the income tax and tax administration legislation (as amended) as at the time of publishing and includes the following: The Taxation Laws Amendment Act 34 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42951). The Tax Administration Laws Amendment Act 33 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42952). The Rates and Monetary Amounts and Amendment of Revenue Laws Act 32 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42950). Date published: 8 December 2020
15 January 2021	Customs & Excise Act, 1964	Draft Schedule Amendment (Value-Added Tax Act) Draft amendments to paragraph 8 of Schedule 1 to the Value-Added Tax Act, 1991 – Special shops for diplomats Date published: 17 December 2020
18 September 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Taxation of the receipt of deposits 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
31 August 2020	National Legislation	2020 Draft Rates Bill, Draft Tax Bills, Draft Regulations and Venture Capital Company (VCC) Survey Media Statement: Publication of the 2020 Draft Tax Bills 2020 Draft Taxation Laws Amendment Bill (TLAB) – 31 July 2020 2020 Draft Explanatory Memorandum on the 2020 Draft Taxation Laws Amendment Bill – 31 July 2020 2020 Draft Tax Administration Laws Amendment Bill (TALAB) – 31 July 2020 2020 Draft Memorandum on the objects of the 2020 Draft Tax Administration Laws Amendment Bill – 31 July 2020 2020 Draft Regulations Prescribing Electronic Service – 31 July 2020 2020 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill – 31 July 2020 (Added on 3 August 2020) 2020 VCC Survey – 31 July 2020 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
5 August 2020	Customs & Excise Act, 1964	Draft Tariff Amendments Draft amendment to Part 1 of Schedule No. 1 (Notes to Chapter 98) Draft amendment to Part 1 of Schedule No. 3 (Rebate item 317.01) Draft amendment to Part 1 of Schedule No. 3 (Rebate item 317.04) Draft amendment to Part 2 of Schedule No. 4 (Rebate item 460.17) Draft amendment to Part 3 of Schedule No. 5 (Rebate item 537) 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: www.itac.org.za/pages/services/tariff-investigations/apdp-post-2020-documents 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 Draft Interpretation Note – Value-added tax consequences of points-based loyalty programmes 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 Draft Interpretation Note – Taxation of amounts received by or accrued to missionaries 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
31 March 2020 Due date extended to 15 May 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Doubtful debts Notes outlining the application process Request for information (RFI) A – section 11(j)(i) Request for information (RFI) B – section 11(j)(ii) Excel-based Loss Allowance Models [Note that there are two excel forms, relating to subparagraphs (i) and (ii) respectively] 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 Draft Binding General Ruling – Unbundling of unlisted company: Impact of non-qualifying shareholder 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
30 April 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Associations: Funding requirement 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 Draft Interpretation Note – Public benefit organisations: Provision of residential care for retired persons 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 February 2020	Income Tax Act, 1962	Draft Guide Draft guide to building allowances (Issue 2) 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
17 January 2020	Carbon Tax Act, 2019	Draft Regulations Two draft regulations were published for comment: Draft Regulations – Trade Exposure Allowance Draft Regulations – GHG Emissions Intensity Benchmarks 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 Draft Interpretation Note 18 (Issue 4) – Rebates and deduction for foreign taxes on income 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
24 June 2019	Tax Administration Act, 2011	Draft Common Reporting Standard Regulations Draft CRS 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.
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: 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 The General Notes to the Excise Tariff Schedule No. 1 – Excise and Ad Valorem Duty Schedule No. 2 – Environmental Levy Schedule No. 3 – Fuel and Road Accident Levy Schedule No. 4 – Health Promotion Levy Schedule No. 5 – Ordinary Levy Schedule No. 6 – Rebates and Refunds of Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy Schedule No. 7 – Rebate on Import Duties 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: 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. 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. 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. 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. 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. 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)
18 September 2018	Customs & Excise Act, 1964	Draft Amendment Notices Draft amendment to section C of Part 1 of Schedule No. 6, by the insertion of Note 7 as well as rebate items 620.25/104.15, 620.25/104.15.21/01.01 and 620.25/104.15.23/02.01 Draft rule inserting form DA 133 – Return in respect of spirits/fortified wine/unfortified wine received and used under rebate of duty Form DA 133 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 Dispute resolution rules in terms of section 103 of the Tax Administration Act, 2011 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 Draft IN on the meaning of “bulk” in Schedule 2 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 Draft IN on the prohibition of deductions for certain intellectual property 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.

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