What’s New at SARS

16 September 2022 – Customs & Excise Act, 1964: The rule amendment notice R2484, as published in Government Gazette 46913 on 16 September 2022, relates to the amendment to the rules under sections 19A and 120 – Substitution of form DA 260 in the Schedule to the Rules to the Customs and Excise Act, 1964 to provide for alcohol powder products (DAR238)

16 September 2022 – This year, the Employer Interim Reconciliation Declaration (EMP501) submission period opens on 19 September 2022 and closes on 31 October 2022. Employers are required to reconcile their Monthly Employer Declarations (EMP201) for the first six months of a Reconciliation Year (1 March 2022 to 31 August 2022). These reconciliations are based on the Monthly Employer Declarations (EMP201) submitted, with the tax values of the interim IRP5/IT3(a)s certificates generated, accurate payroll information, employees’ tax (PAYE) payments made, thereafter an Employer’s Reconciliation Declaration (EMP501) is submitted.  Click here for more information on the employer interim reconciliation submission.

The following enhancements have been implemented for the interim PAYE Filing Season:

• New fields are added on the IRP5/IT3(a) certificates;
• Amendments to validation rules for certain fields on the IRP5/IT3(a) certificates;
• Enhancement to EMP201 and EMP501 request processes;
• Employment Tax Validation on EMP501 Reconciliation;
• Backdating of PAYE liability date;
• Enhancements to Employer de-registration process.

The following Guides were updated:

• PAYE-AE-06-G06 – Guide for Codes Applicable to Employees Tax Certificates 2023 – External Guide
• PAYE-AE-06-G07 – Guide for Validation Rules Applicable to Reconciliation Declarations 2023 – External Guide
• PAYE-AE-06-G08 – Guide for Completion and Submission of Employees Tax Certificates 2023 – External Guide
• PAYE-GEN-01-G05 – Guide for Employers in respect of Employment Tax Incentive – External Guide
• GEN-REG-01-G04 – How to Complete Registration Amendments and Verification Form (RAV01) – External Guide
• EMP-GEN-02-G01 – A Guide to the Employer Reconciliation Process – External Guide

16 September 2022 – Tax Directives enhancements in line with Financial Sector Conduct Authority (FSCA) were implemented. SARS has successfully implemented enhancements to the Tax Directives validation process.

Please note that going forward, SARS will be validating the registration data and status of entities submitting Tax Directive applications with the Financial Sector Conduct Authority (FSCA). Due to the additional control measures, some applications will inevitably be declined due to failed validations if the data that is captured is not aligned with the information on the FSCA website.

Fund Administrators and Long-term Insurers are encouraged to ensure that the registration data (Name of the fund, name of participating employer, name of Long-term Insurer and the registered number) captured on the tax directive application is correct and corresponds with the registration data on the FSCA records.

In the unfortunate event that the tax directive application is declined due to incorrect data captured, kindly ensure that the registration data with the FSCA is used and resubmit tax directive application.

The following Guides were updated:

• IT-AE-33-G01 – Tax Directive for Emigration, Cease to be resident and Expiry of visas – External Guide
• IT-AE-41-G02 – Guide to Complete the Tax Directive Application Forms – External Guide
• IT-AE-41-G03 – Guide to Complete Submit and Cancel a Recognition of Transfer – External Guide

16 September 2022 – The interim use of the manual ADR1 form was enabled for submission of a dispute for Para 13(1)(a) and (b) disputes for PIT, CIT and Trusts which are not supported on the Dispute Platform.

Due to limitations on the applicable returns it is impossible to apply the dispute rules to allow taxpayers to submit the dispute electronically using the DISP01 form on the enhanced dispute process. Therefore the ADR1 form for manual objections has been updated to accommodate the disputes highlighted below:

• Paragraph 13(1)(a) and (b) of the First Schedule to the Income Tax Act No. 58 of 1962.
• Value Added Tax (VAT) imported services; and
• Invalid VAT enterprise.

For more information, see the updated Guide on how to complete the Income Tax Return ITR14 for Companies.

16 September 2022 – The Supplementary Declaration for Companies or Close Corporations (IT14SD) will no longer be required by SARS. The IT14SD will be replaced with a letter requesting relevant supporting documents based on the reason for verification.  For more information, see the Corporate Income Tax webpage. The following Guides were updated:

• How to complete the company Income Tax return ITR14 eFiling
• How to complete the Income Tax Return ITR14 for Companies

16 September 2022 – Customs & Excise Act, 1964: Publication details for tariff amendment notice R2485 and R2486, as published in Government Gazette 46193 on 16 September 2022, are now available

16 September 2022 – SARS Customs is conducting roadshows in the regions to assist traders to onboard onto the electronic Registration, Licensing and Accreditation (RLA) eFiling system. Onboarding to the RLA system will lessen manual processing that would, at times, come with delays.

The regional roadshows will provide traders the opportunity to have physical interactions with SARS’ Registration, Licensing and Accreditation officers, who will show them how the registration and licensing is done, as well as how to navigate the system. The Roadshow began at Alberton Campus between 6 and 9 September 2022 and has now moved to the Cape Town branch office between 11 and 22 September 2022. More roadshow venues and dates will be announced through SARS’ communication channels.

15 September 2022 – Customs & Excise Act, 1964: The tariff amendment notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Part 1 of Schedule No. 4, by the insertion of rebate item 412.01/00.00/02.00 in order, to provide a rebate provision for the importation of weapons, weaponry systems, ammunition and related items used for testing purposes – ITAC Report 646; and
• Part 1 of Schedule No. 2, for the imposition of anti-dumping duties on clear float glass classifiable in tariff subheading 7005.29 originating in or imported from Malaysia– ITAC Report 683.

Publication details will be made available later

15 September 2022 – Income Tax Act, 1962, and Securities Transfer Tax Act, 2007

• BPR 378 – Transfer of listed financial instruments to collective investment schemes in exchange for participatory interests

15 September 2022 – Due to ongoing maintenance, you may experience intermittent interruptions while using the Lwazi Virtual Assistant service between 18:00 and 18:30 on Thursday, 15 September 2022. Our apologies for the inconvenience.

14 September 2022 – SARS will host a webinar on Thursday 22 September 2022. As an important Small, Medium and Micro Enterprise stakeholder, you are invited to join us, and you may extend this invitation to other interested parties.

The details of the event are as follows:

Theme:  Completion of VAT Return (VAT 201) for SMMEs
Date: Thursday, 22 September 2022
Time: 17:00 – 19:00
Platforms: YouTube – https://youtu.be/pJo_W9JNhDk

If you have questions about VAT, please send an email to [email protected]

When taxpayers have clarity and certainty about their tax obligations, they will be in a better position to comply with their tax obligations.

The following topics will be covered:

·        How to complete the VAT 201?

·        Which supplies/services are taxable?

·        What are the requirements of the Tax Invoice?

·        What is the output tax?

·        What is the input Tax?

·        How do I calculate the interest and penalties?

·        How do I understand my statement of account?

·        What are the common Audit findings?

14 September 2022 – Employer Interim Reconciliation submission 19 September to 31 October 2022

This year, the Employer Interim Reconciliation Declaration (EMP501) submission period opens on 19 September 2022 and closes on 31 October 2022. Employers are required to reconcile their Monthly Employer Declarations (EMP201) for the first six months of a Reconciliation Year (1 March 2022 to 31 August 2022). These reconciliations are based on the Monthly Employer Declarations (EMP201) submitted, with the tax values of the interim IRP5/IT3(a)s certificates generated, accurate payroll information, employees’ tax (PAYE) payments made, thereafter an Employer’s Reconciliation Declaration (EMP501) is submitted.  Click here for more information on the employer interim reconciliation submission.

13 September 2022 – On Friday, 16 September, eFiling may not be available between 18:00 and 23:00 due to ongoing maintenance. We apologise for the inconvenience.

13 September 2022 – Income Tax Act, 1962

• Draft Interpretation Note 112 (Issue 2) – Section 18A: Audit certificate

Due date for comment: 14 October 2022

13 September 2022 – The facility code list SC-CF-19-A02 attached to the external policy has been revised.  The details of the new facility: AG – Dachser South Africa (Pty) Ltd, have been added.

• Registration Licensing and Designation – External Policy

13 September 2022 – Customs Weekly List of Unentered Goods

13 September 2022 – Income Tax Act, 1962: Tables of Interest Rates

• Table 1 – Interest rates on outstanding taxes and interest rates payable on certain refunds of tax
• Table 2 – Interest rates payable on credit amounts

12 September 2022 – Tax Directive Software Implementation

The South African Revenue Service (SARS) will introduce enhancements to the Tax Directives process as indicated in the communication published on 20 July 2022. The planned implementation date is scheduled for 16 September 2022, you will be notified should this date change.

12 September 2022 – SARS Customs and Excise is enhancing current systems with modern, automated systems to facilitate legitimate trade and travel.

The Refunds and Drawback process is being automated as part of this modernisation. Previous communication indicated that the system would go live on 19 September 2022. The implementation date has been postponed due to the following reasons:

1. To allow an additional period for trade testing.
2. To consider additional feedback from various stakeholders.
3. To allow additional time to make changes to the development of the system resulting from additional enhancements to the design.

For more information, see the letter to Trade.

12 September 2022 – Employer Interim Reconciliation Filing Season

Please be advised that in preparation for the opening of the Employer Interim Reconciliation Filing Season on 19 September 2022, the prepopulated liabilities reflected on the Reconciliation Declaration (EMP501) during the period 14 to 16 September 2022 may not be complete.

• This will only affect employers for whom a Revised Declaration (EMP201) was processed from 14 to 16 September 2022, for a month during the relevant EMP501 reconciliation period.
• Affected employers are advised to submit such a Reconciliation Declaration (EMP501) from Monday, 19 September 2022.