ENS Tax In Brief - Issue 138

Below, please find issue 138 of ENS' Tax in brief, a snapshot of the latest tax developments in South Africa.

SARS publications

• Preliminary Figures on 2024 to 2025 Filing Season
  • The South African Revenue Service's ("SARS") filing season for provisional taxpayers and trusts closed on 20 January 2025.
  • Find more information here.
• Trade Statistics for December 2024
  • SARS recorded a preliminary trade balance surplus of R15.5 billion in December 2024.
  • This surplus was attributable to exports of R160.0 billion and imports of R144.6 billion.
  • Find a copy of the media release here.
• Latest Tax Practitioner Connect Newsletter
  • SARS has published the January 2025 Tax Practitioner Connect newsletter which, inter alia, deals with the following:
    • Tax exempt institutions
    • An update on the latest scam about refunds on assessments
    • The Medical Indemnity insurance and the related tax implications
    • Brief overview of the latest enhancements to the SARS MobiApp.
  • Find more information here.
• More than 2 million taxpayers withdraw from their savings pot
  • There have been over 2.66 million applications for two-pot system withdrawals received by SARS. SARS has processed 2,403,379 approved tax directives, while others were declined due to errors like incorrect ID or tax numbers. A total amount of R43.42 billion has been paid out by SARS to date from the savings pot.
  • Taxpayers must ensure correct details before applying. Verify ID and tax numbers and check for outstanding SARS debt, as deductions may apply before payout.
  • Withdrawals are taxed at marginal rates (between 18% to 45%). Tax is deducted before payout, and outstanding SARS debts may also be deducted from the amount.
  • 213,654 taxpayers identified for incorrect income declarations. SARS warns that understating income to reduce tax rates is tax evasion and will result in penalties.
  • Find more information here.
• Tables of Interest Rates
  • SARS published the rates at which interest-free or low interest loans are subject to income tax.
  • Find a copy of the interest rate table here.

customs and excise

• Tariff amendments 2024
  • Extract from the Taxation Laws Amendment Act 42, 2024, in which the following amendments, relating to the Customs and Excise Act, 91 of 1964 ("Customs and Excise Act"), are published:
    • Amendment to Parts 1, 2A, 5A and 5B of Schedule No. 1 – see clauses 41.(1) – 41.5(b)
    • Amendment to Part 4 of Schedule No. 4 – see clauses 42.(1) – (3)
    • Amendment to Part 4 of Schedule No. 5 – see clauses 42.(1) – (3)
    • Amendment to Part 1F of Schedule No. 6 – see clauses 44.(1) – (3)
  • The effective dates are specified in clauses 41 to 44.
• Customs and Excise Act | Draft Documents | Saleable Goods Declaration
  • Form DA 5 provides for the declaration of sealable goods on board ship. Amendments to the form were published for comment in November 2024 to align with the rules under section 9. Following a review of comments, further substantive amendments to the form are proposed for public comment.
  • Comments must be sent to policycomments@sars.gov.za
  • The due date for comment is 14 February 2025.
  • Find a copy of the amended declaration form here.
• Prohibited and Restricted Imports and Exports List
  • The Prohibited and Restricted Imports and Exports List setting out export and import items that are subjected to permits was published.
  • Find the complete list here.

international

• Organisation for Economic Co-Operation and Development ("OECD") | Peer Review Results on Preferential Tax Regimes under BEPS Action 5
  • The latest results by the Forum on Harmful Tax Practices ("FHTP") peer review of preferential tax regimes and no or nominal tax jurisdictions highlight the progress made by jurisdictions in addressing harmful tax practices through the implementation of the international standard under BEPS Action 5.
  • At its December 2024 meeting, the FHTP reached new conclusions on eight regimes, and completed its fourth annual monitoring of the substantial activities' requirements, as part of the implementation of the BEPS Action 5 minimum standard on harmful tax practices.
  • The total number of regimes reviewed by the FHTP since the start of the BEPS Project is 332, with over 40% of those regimes being (or in the process of being) abolished.
  • Find the outcomes of the review here.