What’s New at SARS

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

21 February 2024 – Beware of the latest scam appearing to be an email from SARS with the subject title ‘SARS tax review’. Inside the email is a QR code (Quick Response code), don’t scan it or point your mobile device camera at it. See the assessment of tax obligations scam example here.

For the latest scams, keep an eye on the Scams & Phishing webpage.

16 February 2024 – The internal and external policies for inbound and outbound duty and tax-free shops have been updated to align with Section 38 (1)(a) of the Customs and Excise Act.  The section specifies that goods entered or cleared may be placed under a Customs warehouse regime, for purposes of being sold in a facility known as a duty and tax-free shop.

• SC-CW-01-07 – Inbound and Outbound Duty and Tax-Free Shops – External Policy

16 February 2024 – Income Tax Act, 1962

• Draft Interpretation Note – Consequences of an employer’s failure to deduct or withhold employees’ tax

Due date for comment – 15 March 2024

16 February 2024 – Customs and Excise Act, 1964: Publication details for tariff amendment notices R4370, R4371, R4372, and R4273, as published in Government Gazette 50129 on 16 February 2024, are now available.

16 February 2024 – The SARS Complaints Management Office (CMO) contact number has changed to a toll-free number. The new CMO number is 0800 12 12 16 and not 0860 12 12 16 anymore. For more information on the complaints process, see the Lodge a complaint webpage.

15 February 2024 – Customs and Excise Act, 1964: The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA) – allocations for 2023 (with retrospective effect from 1 January 2023);
• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA) – re-allocations for 2022 (with retrospective effect from 1 September 2022 up to and including 31 December 2022);
• Part 1 of Schedule No. 2, by the insertion of items 215.02/7210.49.10/01.08; 215.02/7210.49.10/02.08 and 215.02/7210.49.10/03.08 in order to impose anti-dumping duties on imports of other flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, otherwise plated or coated with zinc, of a thickness of less than 0,45 mm. originating in or imported from the Peoples Republic of China – ITAC Report 720; and
• Part 1 of Schedule No. 3, by the insertion of rebate item 307.08/4002.19.90/01.08 in order to create a rebate provision for customs duty applicable to synthetic rubber, classifiable in tariff subheading 4002.19.90 used in the manufacture of tyres, classifiable in tariff heading 40.11 – ITAC Report 625.

Publication details will be made available later

15 February 2024 – Customs and Excise Act, 1964

• Accreditation of Clients

15 February 2024 – Income Tax Act, 1962: Multilateral Instrument (MLI) synthesised texts:

• Australia (updated)

14 February 2024 – Customs and Excise Act, 1964

South Africa is streamlining the process of technical tariff amendments with other Southern African Customs Union (SACU) Member States for the insertion of 8-digit tariff subheadings for statistical purposes in the Common External Tariff. The date for submitting applications has changed from 31 August to 31 March each year.

The tariff amendments page has been updated accordingly.

14 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, 16 February 2024 from 18h00 to 21h00 and on Saturday, 17 February 2024 from 14h00 to 16h00.

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

13 February 2024 – Value-Added Tax Act, 1991

• SARSTC VAT 22402 (VAT) [2024] ZATC CPT (18 January 2024)

The “ratio” of goods and services a vendor intends to use for taxable compared to other uses: Whether and how the Head Lease should be factored into the taxpayer’s section 17(1) apportionment ratio.

9 February 2024 – The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include the details of the new approved container depot AW – Reddy Ship (Pty) Ltd. in Johannesburg.

SC-CF-19-A02 – Facility Code List – External Annexure

9 February 2024 – RFP28/2023: Procurement of suitable dogs to be trained as detector dogs through a panel of service providers for period of 5 years