Below, please find issue 73 of ENSafrica's tax in brief, a snapshot of the latest tax developments in South Africa.

LEGISLATION AND DRAFT LEGISLATION

  • National Treasury has released a media statement on the publication of the draft regulations and draft explanatory memorandum on domestic reverse charge on valuable metals in terms of section 74 of the Value-Added Tax Act,1991 (the "VAT Act") which have been published for public comment
    • comments on the draft regulations are to be submitted to the National Treasury's tax policy depository at 2020AnnexCProp@treasury.gov.za and to SARS at acollins@sars.gov.za.
    • find a copy of the media statement here
    • find a copy of the draft regulations here
    • find a copy of the draft explanatory memorandum here

SARS PUBLICATIONS

  • SARS has published a media release regarding assets of two companies attached over combined ZAR57-million in tax debts
    • The assets of a logistics company that owed the South African Revenue Service ("SARS") ZAR39-million in unpaid taxes have been attached by the sheriff following a civil judgement and writ granted by the Pretoria High Court.
    • find a copy of the media release here
  • SARS has published an invitation to Webinar | How to apply for a Tax Compliance Status ("TCS") on eFiling
    • To assist taxpayers, SARS hosted a virtual webinar on 30 September 2021 for Small, Medium and Micro Enterprise ("SMMEs"). The webinar provided information on the navigation of eFiling and the application for the TCS on eFiling.
    • The following topics were discussed:
      • the purpose of TCS;
      • platforms where you can apply for TCS;
      • eFiling navigation;
      • common errors taxpayers make;
      • reasons why the TCS fail and how to remedy that;
      • non-compliance (Debt Management and completion of the Company Income Tax Return (ITR14));
      • TCS Pin verification; and
      • demonstration
    • find a link to a recording of the webinar here
  • SARS has published Mobile Tax Unit updates
    • the Mobile Tax Unit schedules have been updated.
    • find a link to the updated schedules for each of the provinces here
  • SARS has published the latest Tax Practitioner newsletter, now available
    • the latest Tax Practitioner Connect Newsletter (issue 25) deals with a few topics including:
      • Third Party Data Bi-Annual Submissions;
      • SARS System Changes and Enhancements;
      • the 2021 Employer Interim Reconciliation Submission;
      • the SARS browser now includes MAC browsers;
      • Tax Practitioner Service; and
      • The SARS Commissioner urges taxpayers to make us of registered tax practitioners.
    • find a link to the newsletter here
  • SARS has released the trade statistics
    • SARS released the trade statistics for August 2021 on 30 September 2021 recording a preliminary trade balance surplus of ZAR42.40-billion attributable to exports of ZAR158.92-billion and imports of ZAR116.52 billion.
    • find a copy of the full media release here
  • SARS has published Tax Directives relating to Trade Testing Dates and Software Implementation
    • SARS will introduce enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.202.
    • The Trade Testing dates are 25 October 2021 to 22 November 2021 in order to prepare for the go-live date planned for December 2021. The exact date will be communicated closer to the time.
    • for more information on the trade testing dates and software implementation click here

CUSTOMS AND EXCISE

  • Updated Customs weekly list of unentered goods
    • find a copy of the updated list here
  • Reporting of Conveyances of Goods
    • The Reporting of Conveyances of Goods External Policy has been updated.
    • This revision includes the Number Plate Recognition ("NPR") cameras.
    • NPR cameras will mark trucks for arrival or exit at land border-posts where the system has been rolled out.
    • The reporting of conveyances and goods process has been updated to include the NPR process.
    • Where the NPR cameras are not installed the gate-in and gate-out process must still be followed by the Customs Officer.
    • find a copy of the Reporting of Conveyances and Goods External Policy document here
  • Customs Clearance Declarations
    • The acquittal process of bonded and transit goods has been enhanced. The information previously published in SC-TR-01-02 and SC-TR-01-03 has been inserted in SC-CF-54 and SC-CF-55 respectively, if it is still relevant to the new acquittal process.
    • Customs will, on a risk based approach, stop goods that are in bond or in transit through South Africa and request supporting documents. A Documentary Inspector will forward the case for a physical inspection. The case will then be conditionally released. Proof that the goods were exported from South Africa or has left the Southern African Customs Union ("SACU") must be uploaded by the declarant to the case within thirty (30) days.
    • The completion of declaration manual (SC-CF-04) and its annexures have been re-numbered and is included as annexures in the external clearance declaration policy (SC-CF-55). The Facility Code List SC-CF-04-A08 has been renumbered as SC-CF-19-A02 and incorporated into the external registration, licensing and designation policy (SC-CF-19).
    • The printing of CN1 and CN2 at land-border posts are no longer part of the process.
    • Find a copy of the Registration Licencing and Designation External Policy document here.
    • Find a copy of the Clearance Declaration External Policy document here.
    • Find a copy of the RLA Customs Trader Portal External Policy document here.
  • Customs and Excise Act, 91 of 1964 | tariff amendment Notice R871 published in Government Gazette No. 45170 of 17 September 2021
    • Amendment to Part of Schedule No. 1, by the substitution of tariff subheading 7325.91, in order to increase the general rate of customs duty on grinding balls from free of duty to 15% - ITAC Report No. 638.
    • effective from 17 September 2021
    • find a copy of the notice here

INTERNATIONAL

  • Rwanda became the 120th Global Forum member to commit to start automatic exchange by a specific date
  • The Global Forum Secretariat held a workshop on the concept of foreseeable relevance
    • A workshop on the concept of foreseeable relevance targeted at tax officials involved in exchange of information ("EOI") was organised by the Global Forum Secretariat. The workshop was held virtually on 28 to 29 September 2021 and was attended by 149 participants from 81 jurisdictions.
    • The workshop aimed at strengthening awareness and improving co- operation and mutual understanding of the concept of foreseeable relevance among participants. A particular focus was put on areas where the application of the concept can be discussed, e.g. transfer pricing requests and group requests. Through practical sessions under the guidance of the Secretariat, participants simulated the critical steps of an EOI request analysis, both in the role of requesting and requested jurisdiction.
    • The concept of foreseeable relevance is at the core of all forms of EOI. Supplying and receiving jurisdictions shall exchange such information as is foreseeably relevant to ensure the correct application of the provisions of international agreements between them, or of their domestic laws. This standard is intended to provide for EOI in tax matters to the widest possible extent and, at the same time, to clarify that jurisdictions are not at liberty to engage in "fishing expeditions", or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer.
    • find a copy of the article here
  • Andorra, Namibia and Spain took further steps to strengthen their tax treaties
    • Namibia signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, becoming the 96th jurisdiction to join the Convention, which now covers around 1800 bilateral tax treaties.
    • Andorra and Spain deposited their instruments of ratification for the Convention thus underlining their strong commitment to prevent the abuse of tax treaties and base erosion and profit shifting ("BEPS") by multinational enterprises. The Convention will enter into force on 1 January 2022 for these countries.
    • find a copy of the article here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.