ENS Tax In Brief - Issue 134

Below, please find issue 134 of ENS' Tax in brief, a snapshot of the latest tax developments in South Africa.

medium-term budget

• Medium Term Budget Policy Statement, 2024 ("MTBPS")
  • The in-year revenue outlook is weaker than expected as a result of declining fuel levy and import value-added tax collections. Compared with the 2024 Budget, the gross tax revenue estimate for 2024/25 is revised down by R22.3 billion.
  • The medium-term revenue outlook is projected to increase to R2.3 million, or 24.8% of GDP by 2027/28. Compared with the estimates set out in the 2024 Budget Review, which reflected a high level of energy imports, gross tax revenue collection is projected to fall short by R41.4 billion in 2025/26 and 2026/27.
  • o Find a copy of the MTBPS here.

legislation and draft legislation

• Legal Counsel | Preparation of National Legislation
  • The Minister of Finance introduced the following bills in the National Assembly on 30 October 2024:
    • Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B15—2024]
    • Taxation Laws Amendment Bill [B16—2024]
    • Tax Administration Laws Amendment Bill [B17—2024]
    • Revenue Laws Amendment Bill [B18—2024]
    • Global Minimum Tax Bill [B20—2024]
    • Global Minimum Tax Administration Bill [B20—2024]
• The National Treasury invites taxpayers, tax practitioners, and members of the public to submit technical tax proposals to be considered for possible inclusion in Annexure C of the 2025 Budget Review
  • The due date for technical tax proposals for possible inclusion in Annexure C of the 2025 Budget Review is 25 November 2024.
  • This year virtual workshops with stakeholders will be held on 3 and 4 December 2024.
  • Read the full Media Statement here.
• Legal Counsel | Explanatory Memoranda
  • The Memorandum on the Objects of the Tax Administration Laws Amendment Bill, 2024 has been extracted from the Tax Administration Laws Amendment Bill, as introduced by the Minister of Finance in the National Assembly on 30 October 2024.
  • Find more information here and a link to the Memorandum on the Objects of the Tax Administration Laws Amendment Bill, 2024 here.

SARS publications

• The Donations Tax Guide has been updated with details of the latest version of the Donations Tax Declaration Form ("IT144") to assist with the completion of the IT144. Find a copy of the updated Donations Tax Guide here.
• The Tax-Exempt Institutions Connect Issue 6 (October 2024) is now available here.
• The calculation of national currencies for the following trade agreements has been published:
  • SACU EFTA
  • SACUM UK EPA
  • SADC EU EPA
• Conveyancers | Supporting documents checklist for Transfer Duty and lease agreements
  • A checklist for Transfer Duty Relevant Material per transaction type and an example of a summary of leases to be submitted with the Transfer Duty application have been published.
  • For more information, see the Transfer duty webpage.
• New eFiling registrations for personal income tax may now require biometric facial recognition. For more information, see the updated guides:
  • How to Register for eFiling and Manage Your User Profile
  • How to register for the use of the SARS MobiApp

customs and excise

• Customs | Customs Modernisation Programme ("CMP") for South African Traveller Management System ("SATMS") – Phase 2
  • During Phase 2, the traveller will be required to declare currency and temporary imports on SATMS.
  • To provide clarity to the traveller, the SATMS Through the SARS Website – External Guide and SATMS Through the Mobi-App and QR Code Scan – External Guide have been updated.
  • Find more information here.
• Customs | CMP Bond Automation Project
  • As part of the Customs Modernisation Program Bond Automation Project, several Customs Bond-specific documents and Registration Licensing and Accreditation documents ("RLA") have been updated to enable the efficiency of bond registrations on the RLA dashboard.
  • Both the Customs and Excise Manage eAccounts external guides underwent amendments to highlight the newly introduced option of managing bonds under the eAccount menu on the eFiling platform for Customs and Excise clients respectively. Further updates to the guides address the requirement that, when clients provide supporting documentation for processing, these documents will be returned to the client after they have been scanned by the Branch Agent.
  • The updated documents can be accessed through the following links:
    • SC-SE-05 – Bonds – External Policy
    • SC-SE-05-A01 – Bond Assessment – External Annexure
    • SC-CF-19 – Registration Licensing and Accreditation – External Policy
    • SC-CF-19-A01 – Documentary Requirements – External Annexure
    • SC-CF-42 – Customs Trader Portal – External Guide
    • SC-DT-A-04 – Manage eAccounts on eFiling – External Guide
    • SE-ACC-07 – Manage eAccounts on eFiling – External Guide
• Customs | Registration, Licensing and Accreditation
  • The facility codes used in Box 30 of Goods Declaration ("GD") have been updated to include the details of the newly approved container depot – Coega Fruit Terminal (located in Gqeberha).
  • This enables Customs to communicate the status of the consignment by transmitting electronic messages to these facilities.
  • Find more information here.

international

• OECD | Publications
  • The OECD Secretary-General Tax Report to G20 Finance Ministers and Central Bank Governors (G20 Brazil, October 2024) has been published. Find more information 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.