Chapter 7 (sections 75-90) of the Tax Administration Act, 2011 governs the issuing of advance rulings.
Applications for advance rulings are done through eFiling, so you have to be registered as an eFiler first.
Read more about Advance Tax Rulings.
|Type of ruling||Description||Binding effect|
An advance ruling may be any one of the following:
|The binding effect differs per type|
|Binding General Ruling (BGR)||A written statement issued by a senior SARS official under section 89 regarding the interpretation or the application of a tax Act to the stated facts and circumstances||On SARS and all qualifying taxpayers|
|Binding Private Ruling (BPR)||A written statement issued by SARS regarding the application of a tax Act to one or more parties to a ‘proposed transaction’, in respect of that ‘transaction’||On SARS and the applicant|
|Binding Class Ruling (BCR)||
A written statement issued by SARS regarding the application of a tax Act to a specific ‘class’ of persons in respect of a ‘proposed transaction’
|On SARS and the specific ‘class’ of persons|
|Non-binding private opinion||Informal guidance issued by SARS in respect of the tax treatment of a particular set of facts and circumstances or ‘transaction’, but which does not have a binding effect within the meaning of section 88||None, but may be cited in proceedings involving the person to whom the opinion was issued|