What’s New at SARS

3 August 2023 – You will recall that in the past SARS has been issuing and certifying both 12 and 13 blocks SCO for goods destined within SADC Countries. In 2020 SARS requested the SADC members states to gradually phase-out the 12 blocks SCO in compliance with the record of the decisions of the 28th meeting of the Ministers of Trade that was taken in 2016, Gaborone, Botswana.

The transition from the 12 to 13 blocks SCO took a considerable period due to excess stock. Now that SARS and Traders have limited stock of the 12 blocks SCO, it is now an opportune time to transition to the 13 blocks SCO in compliance with the 28th Ministerial decision.

For more information, see our letter to Trade.

3 August 2023 – The tax workshop schedules for Gauteng South during August is now available.

3 August 2023 – Customs and Excise Act, 1964: The tariff amendment notice, scheduled for publication in the Government Gazette, relates to the amendments to –

• Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1701.12, 1701.13, 1701.14, 1701.91, and 1701.99, to reduce the rate of customs duty on sugar from 195,28c/kg to free of duty in terms of the existing variable tariff formula – ITAC Minute 03/2023.

Publication details will be made available later

2 August 2023 – The South African Revenue Service (SARS) has noted the statement made by Mr. Julius Malema at the recently concluded press conference of the Economic Freedom Fighters (EFF). The statement purports that there was a meeting between President Cyril Ramaphosa and SARS Commissioner Mr. Edward Kieswetter where President Ramaphosa gave Commissioner Kieswetter an instruction to investigate the tax affairs of those that attended and sponsored the EFF Gala Dinner held on 27 July 2023.

Today’s statement was preceded by the statement made by Mr. Malema on Saturday at the EFF rally that SARS is “harassing” his family with a view to find anything unlawful against him for nefarious purpose.

See the full media statement here.

2 August 23 – Be careful of fraudulent email talking about an electronic statement and processed returns.

Please do not click on the phishing link, if in doubt, email [email protected].

Keep an eye on our Scams examples webpage.

2 August 2023 – Customs and Excise Act, 1964: The tariff amendment notice, scheduled for publication in the Government Gazette, relates to the amendments to –

• Part 1 of Schedule No. 2, by the insertion of anti-dumping items under 201.02, in order to impose anti-dumping duties against the alleged dumping of frozen bone-in portions of fowls of the species Gallus Domesticus classifiable in tariff subheading 0207.14.9, originating in or imported from Brazil, Denmark, Ireland, Poland and Spain – ITAC Report 695.

Publication details will be made available later

2 August 2023 – Customs and Excise Act, 1964

• Uganda CMAA Agreement – date of entry into force is 1 September 2023

2 August 2023 – The Pretoria branch has to unfortunately close for the rest of the day i.e. Wednesday, 2 August from 14:00, due to water maintenance. Staff will assist taxpayers virtually, where possible. Our apologies for the inconvenience.

1 August 2023 – The pop-up branch schedule for Gauteng South and Western Cape regions, during August until November, are now available.

1 August 2023 – Prohibited and Restricted Imports and Exports list.

Tariff heading 3825.10 requires an Import permit from ITAC.

1 August 2023 – It has been the practice of SARS not to approve the release of funds when resident Trusts make distributions to non-resident Trusts. Following queries in this regard, SARS herewith clarifies its stance on the matter and confirms that it will consider approval for the release of funds/amounts distributed to non-resident Trusts. The process required to obtain the necessary approval is to apply for a manual letter of compliance at SARS by emailing [email protected].

SARS has taken note of the fact that the SARB has relaxed certain exchange control requirements but has decided, based on the risks involved, to introduce the above-mentioned requirement to mitigate the risks.

SARS will perform verification processes to ensure that strict interpretation of the relevant sections of the Act are complied with. Note that the non-resident Trust must be a beneficiary of the resident Trust, and the distribution will only be considered by SARS if it complies with the terms and conditions in the Trust instrument of the resident Trust.

SARS will only allow such distributions if the resident Trust demonstrates that all tax liabilities in respect of the distribution were or will be settled.

Also see the Supporting Documents for Approval of International Transfers (AIT) webpage.

1 August 2023 – RFP19/2023: Provision of Graph Database Management Software Tool with Maintenance and Support

Answers to questions raised by bidders are now available.

31 July 2023 – South Africa recorded a preliminary trade balance deficit of R3.5 billion in June 2023, attributable to exports of R167.6 billion and imports of R171.1 billion.

See the full Media Release here.

Or visit the Trade Statistics webpage.

31 July 2023 – SARS will again provide you an opportunity to test the updated e@syFile™ Employer build before the formal release in mid-September 2023 for the Employer Interim Reconciliation.

The updated e@syFile™ Employer BETA version with enhanced features for download will be released to you on 14 August 2023.  See the Business Requirements Specification here –  SARS_PAYE_BRS – PAYE Employer Reconciliation_V22.1.1 for the Employer Interim Reconciliation submission period 202308.

During the testing period from 14 August 2023 to 6 September 2023, all online functionality will be disabled to prevent the incorrect submission of test data into the production environment. This means the application will default to offline mode. Certain menu options will also be disabled as a precautionary measure.

Enhancements will include:

• Minor amendments to source code validations.
• A separate read-only IRP5/IT3(a) certificate that can be issued to employees.

You will be provided with a link in a follow up letter which will allow you access for testing purposes. Please note that this link is confidential and only available to selected individuals. In order to maintain its confidentiality, please exercise caution and do not share it with others.

SARS will analyse the feedback from the external testers during the test cycle. Please nominate a contact person to act as liaison and provide the person’s contact details to SARS.

Your consolidated feedback should be sent daily to the following persons:

Michelle Welgemoed ([email protected]) and Charlene Hoosen ([email protected]) who will log it with the relevant SARS development team to update the software. SARS will use the feedback to determine the frequency at which updated versions of the test software will be released, where necessary.

Thank you for assisting SARS with the testing of the application.

31 July 2023 – National Legislation: National Treasury and SARS publish the following documents for public comment:

• Media Statement – Publication of the 2023 Draft Tax Bills and Regulations
• 2023 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill
• 2023 draft Taxation Laws Amendment Bill
  • Draft Explanatory Memorandum on the 2023 draft TLAB;
• 2023 draft Tax Administration Laws Amendment Bill
  • Draft Memorandum on the Objects of the 2023 draft TALAB for public comment and introduction in Parliament
• Draft amendments to Regulations in terms of paragraph (d) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on additional criteria for multisource pharmaceutical products
• Draft amendments to Regulations in terms of paragraph (e) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on criteria for clinical trials in respect of deduction for research and development
• Draft amendments to Regulations on domestic reverse charge relating to valuable metal in terms of 74(2) of the Value-Added Tax Act, 1991 (the VAT Act)
  • Draft Explanatory Memorandum on domestic reverse charge  relating to valuable metal in terms of 74(2) of the VAT Act
• Draft amendments on Carbon Offsets Regulations

Due date for comment: 31 August 2023

28 July 2023 – The tax workshop schedules for Gauteng North during August are now available.

28 July 2023 – The latest Government Connect Issue 11 Newsletter is now available. This issue includes information on the 2023 Filing season for individuals and trusts, Corporate income tax form and system changes, training interventions for Municipalities conducted by SARS and National Treasury and the latest Scams.

28 July 2023 – Customs and Excise Act, 1964: Publication details for tariff amendment notice R3735, as published in Government Gazette 49047 of 28 July 2023, are now available.