What’s New at SARS

27 February 2024 – The South African Revenue Service (SARS) confirms that President Cyril Ramaphosa requested the SARS Commissioner Mr. Edward Kieswetter to stay beyond his current term, which was meant to expire on 30 April 2024. Both parties agreed to the extension of his term as Commissioner for a period of two years.

The decision was premised on the understanding that the extended term will afford SARS the opportunity to further embed the SARS strategic intent and transformation on which the organisation embarked upon in 2019. The country as a whole can attest that measurable progress has been made to position SARS as a credible tax and customs authority that plays a pivotal role in helping government to build a capable state for the social and economic development of all South Africans. Commissioner Kieswetter said that “This effort must be intensified and sustained”.

The term extension also provides the necessary time to continue the existing investment to strengthen the SARS leadership bench and prepare for an orderly leadership transition in the organisation over the next 2 years.

Commissioner Kieswetter said that “I can assure all South Africans that, with your support, SARS will spare no effort and continue to work hard to ensure that the vision of a Smart, modern SARS with unquestionable integrity, admired by all is achieved. SARS remains inspired by the transformative and Higher Purpose of serving all South Africans”.

For further information, please contact [email protected]

27 February 2024 – The Commissioner for South African Revenue Service (SARS) Mr Edward Kieswetter hereby confirms that SARS has instituted legal proceedings against Sasfin Bank, as disclosed in the SENS announcement issued by Sasfin Holdings Ltd on 27 February 2024.

SARS conducted a thorough investigation into various South African taxpayers who had not made true and accurate tax disclosures to SARS. The investigation revealed that the taxpayers had colluded to expatriate funds offshore in a manner that obscured tracing the expatriated payments and jeopardises the recovery of tax in South Africa.

The Commissioner’s position is that it is inappropriate to comment on the question of liability and compensation for the fiscus’ loss, as these are legal issues that are now before the South African judicial system. Given this development, SARS will not be making any further comment.

The Commissioner wishes to affirm his commitment to pursue the enforcement and recovery of taxes without fear, favour or prejudice in the interest of upholding the fiscal integrity of the South African tax system.

For further information, please contact [email protected]

27 February 2024 – The Biodiesel external policy has been revised as follows:

• To align with the relevant sections of the Act.
• The biodiesel process flow and the process for reprocessing, destruction and abandonment have been deleted from the external policy.
• Robbery and theft have been included as exclusionary items under Vis Major losses.

SE-BIO-02 – Biodiesel – External Policy

27 February 2024 – The Health Promotion Levy on Sugary Beverages external policy has been revised to align with the relevant sections of the Act.

• SE-SB-02 – Health Promotion Levy on Sugary Beverages – External Policy

27 February 2024 – The Declaration and Return Submission through eFiling guide has been revised as follows:

• To remove references to specific Excise products and apply them to all products
• Relevant processes have been revised to reflect current eFiling system functionalities
• The process for capturing all Excise duties and levies has been updated
• The document has been converted from a manual to a guide and the document Q-Code was changed from SE-ACC-02-M02 to SE-ACC-08

This update resulted in the withdrawal of SE-ACC-06-M01 – Return and Submission of HTML5 forms via eFiling – External Manual.

SE-ACC-08 – Declaration and Return Submission via eFiling – External Guide

27 February 2024 – There is a new scam doing the rounds talking about eFiling Income Tax assessment and tax compliance obligations. Please do not open the link and delete the email immediately. An example of the scam was published on our Scams & Phishing webpage.

26 February 2024 – The tax directive guides have been updated to include the following changes:

• The new fields added on the IRP3(s) form to allow for the taxation of local and foreign income for South African citizens who have worked both locally and overseas who do not qualify for exemption under s10(i)(o)(ii).
• The new fund types added to the ROT01 form which are Unclaimed Pension Preservation Fund and Unclaimed Provident Preservation Fund.

IT-AE-41-G01 – Completion Guide for IRP3(a) and IRP3(s) Forms – External Guide

IT-AE-41-G03 – Guide to Complete Submit and Cancel a Recognition of Transfer – External Guide

26 February 2024 – SARS will host a webinar on Trust and Tax Compliance on Thursday, 29 February 2024, to help Trust taxpayers fulfil their tax obligations and remain tax compliant.

Pursuant to our strategic objectives of providing clarity and certainty and making it easy for taxpayers to comply with their tax obligations, the webinar aims to educate Trust taxpayers on Tax compliance.

The webinar will include relevant compliance information as well as discussions on various topics in the Trust tax environment. A focus on the Trust Modernisation Programme, South Africa’s grey-listing by FATF, and the linked Beneficial Ownership requirements will be included.

With the webinar, the Trust Unit aims to:

• Convey the compliance requirements across the Trust value chain, namely registration, filing, declaration, and payment,
• Educate Trust taxpayers on requirements that are not clear; and
• Ultimately see improvements in Trust Tax compliance across the Trust value chain.

As an important stakeholder, you are invited to join the webinar. You may also extend the invitation to other interested parties.

Webinar details:

Topic:  Trusts and Tax Compliance

Date: Thursday, 29^th of February 2024

Time: 17:00 – 19:00

Platforms: Virtual (Zoom and YouTube)

Register in advance for this webinar on the following link:

https://sars-gov-za.zoom.us/webinar/register/WN_5_2bneKKQviX9LtKB2eRIw

Passcode: 509896

SIP: [email protected]

YouTube link: https://youtube.com/live/p8xq__pPjU0?feature=share

After registering, you will receive a confirmation email with information on how to login to the webinar for an opportunity to have your questions answered during the session.

If you have questions about tax exemption institution status and section 18A, please send an email to [email protected]

The webinar will also be recorded and published on the SARSTV YouTube channel afterwards.

26 February 2024 — SARS has enhanced the Tax Directives system in line with legislative and system requirements.

The following changes to the Tax Directives process will affect external stakeholders:

• Taxation of local and foreign income will now cater for South African citizens who earned income both locally and abroad in one Year of Assessment, but who do not qualify for 10(i)(o)(ii).

• Free portability between funds, such as with transfers to unclaimed benefit funds:

• • The provisions of the Income Tax Act confirm that a deduction equal to the value of the amount transferred will be allowed as a deduction for any transfer from a pension fund and pension preservation fund (including an unclaimed-benefit pension preservation fund).
  • This means that the transfer will be tax neutral.
  • The update to the directives system will allow the “Transfer – Unclaimed Benefits” (code 48) to account for transfers between pension, preservation, and provident funds, and unclaimed-benefit funds of each type.

• Free portability between funds: the following fund types will be added to the eFiling RT01 screen drop-down menu:

• • Unclaimed Pension Preservation Fund.
  • Unclaimed Provident Preservation Fund.

22 February 2024 – Income Tax Act, 1962: The income tax notice, scheduled for publication in the Government Gazette, relates to –

• fixing the rate per kilometre in respect of motor vehicles – section 8(1)(b)(ii) and (iii).

Publication details will follow in due course

22 February 2024 – Income Tax Act, 1962

• Binding Class Ruling 088 – En commandite partners investing in solar assets

22 February 2024 – The latest Tax Practitioner Connect Newsletter Issue 49 is available. This issue includes information on the solar energy tax credit, recognition of controlling bodies, registration of tax practitioners, VAT  enhancements for estimated assessments and local assets at market value declared on the ITR12 return.

22 February 2024 – Achieving our Vision 2024 of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust and secure, by performing regular upgrades, enhancements and maintenance.

Considering the above, SARS Digital platform upgrades are scheduled for Friday, 23 February 2024 from 18h00 to 22h00.

During this time, you may experience intermittent service interruption on eFiling and Customs Digital Platform. Traders are requested not to resubmit declaration which are awaiting responses.

21 February 2024 – National Legislation: 2024 Draft Tax Bills and Draft Global Minimum Tax Bills

• Draft Revenue Laws Amendment Bill, 2024
  • Draft Explanatory Memorandum RLAB
• Draft Global Minimum Tax Bill, 2024
  • Draft Explanatory Memorandum on Global Minimum Tax Bill
• Global Minimum Tax Administration Bill, 2024
• Draft Rates and Monetary Amounts Bill, 2024

Due date for comment: 31 March 2024

21 February 2024 – National Legislation

• Taxation Proposals as tabled by the Minister of Finance in his Budget Review 2024 at 14:27

21 February 2024 – SARS plans to introduce enhancements to the Tax Directives system on Friday, 23 February 2024, in line with the IBIR-006 Tax Directives Interface Specification Version 6.601.

The following enhancements will be introduced:

• • Taxation of local and foreign income, which will cater for South African citizens who earned income both locally and abroad in one Year of Assessment, but who do not qualify for 10(i)(o)(ii).
  • Free portability between funds, such as with transfers to unclaimed benefit funds:
    • The provisions of the Income Tax Act confirm that a deduction equal to the value of the amount transferred will be allowed as a deduction for any transfer from a pension fund and pension preservation fund (including an unclaimed-benefit pension preservation fund).
    • This means that the transfer will be tax neutral.
    • The update to the directives system will allow the “Transfer – Unclaimed Benefits” (code 48) to account for transfers between pension, preservation, and provident funds, and unclaimed-benefit funds of each type.
  • Free portability between funds: the following fund types will be added to the eFiling RT01 screen drop-down menu:
    • Unclaimed Pension Preservation Fund.
    • Unclaimed Provident Preservation Fund.

Please do not submit Tax Directives files on the current form form after 16:00 on 23 February 2024. SARS will queue and process such files after we have upgraded the Tax Directive system.

SARS values your support and collaboration, as always.

21 February 2024 – The Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter, reaffirmed the organisation’s commitment to supporting Finance Minister Mr Enoch Godongwana’s strategy for fiscal consolidation over the medium term. “A well-functioning tax administration within a growing economy is the most sustainable path towards improving the country’s fiscal integrity,” said the Commissioner.

See the full media release here.

21 February 2024 – Income Tax Act, 1962: The income tax notices, scheduled for publication in the Government Gazette, relate to the –

• determination of the daily amount in respect of meals and incidental costs for purposes of section 8(1)(c)(ii) (overnight allowance); and
• determination of the daily amount in respect of meals and incidental costs for purposes of section 8(1)(a)(ii) (daily allowance).

Publication details will follow in due course

21 February 2024 – National Legislation

• Final Response Document – 2023 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2023 Draft Taxation Laws Amendment Bill and 2023 Draft Tax Administration Laws Amendment Bill

21 February 2024 – National Legislation

• Explanatory Memorandum on the Taxation Laws Amendment Bill, 2023