case law
- Democratic Alliance v Minister of Finance and Others
(45530/2025) ZAWCHC (27 April 2025)
- The Democratic Alliance and other parties initiated court action against the Minister of Finance, South African Revenue Service (“SARS”) and other parties, in respect of the proposed change to the standard rate of valueadded tax (“VAT”) in terms of section 7(4) of the Value-Added Tax Act, 1991 (“VAT Act”).
- After considering the submissions made by the applicants, the decision was made by the Minister of Finance to withdraw the VAT rate proposal.
- On 27 April 2025, the Minister of Finance formally agreed to a court order suspending his decision of 12 March 2025 to increase the VAT rate by 0.5 percentage points which was subsequently ratified by the Western Cape High Court on 27 April 2025.
- Find a link to the court order here.
legislation and draft legislation
- Rates and Monetary Amounts and Amendment of Revenue
Laws Bill, 2025
- The Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2025 was introduced in the National Assembly on 24 April 2025.
- The Bill provides for the following:
- to fix the rates of normal tax;
- to amend the Transfer Duty Act, 1949 so as to amend transfer duty monetary thresholds;
- to amend the Income Tax Act, 1962, so as to amend certain provisions;
- to amend the Customs and Excise Act, 1964 (“Customs and Excise Act”), so as to amend rates of duty in Schedule 1 to that Act;
- to amend the Employment Tax Incentive Act, 2013, so as to amend certain provisions;
- to amend the Carbon Tax Act, 2019, so as to amend an amount;
- to amend the VAT Act so as to amend rates of tax and to amend Schedule 2 to that Act
- to provide for the reversal of the VAT increases announced in terms of section 7(4) of the VAT Act; and
- to provide for matters connected therewith.
- Find the Bill here.
- Find the explanatory memorandum on the objects of the Bill here.
advance tax rulings
- Binding general ruling 4 (Issue 4) | Apportionment
methodology to be applied by a municipality
- This ruling prescribes the apportionment method that a municipality must use to determine the ratio contemplated in section 17(1) to calculate the amount of VAT that may be deducted as input tax on mixed expenses.
- This ruling applies with effect from all financial years commencing on or after 1 July 2025, and will apply until withdrawn, amended or the relevant legislation is amended.
- The apportionment formula as set out in Issue 3 of this ruling is withdrawn effective from the aforementioned date.
- Find a copy of the ruling here.
SARS publications
- Government Connect Newsletter
- The latest SARS Government Connect Newsletter for April 2025 was published.
- The newsletter provides information on:
- Employer Annual Declarations commencing on 1 April 2025;
- updated guides and videos for Tax Exempt Institutions;
- details of collaboration agreements that SARS has entered into with other government institutions;
- updates to the SARS Payments Guide.
- Find the newsletter here.
- Corporate Income Tax Guide | Updates
- SARS introduced requirements for submitting the Beneficial Interest and Beneficial Ownership registers as part of the Income Tax Return for Companies (ITR14) submission process, effective from the 2022 year of assessment.
- The Corporate Income Tax Guide has been updated to include
additional clarity on Beneficial Ownership.
- The key factor related to beneficial ownership is whether the individual ultimately owns or controls the company.
- In the case of a state-owned enterprise, the ultimate beneficial owner is determined by examining the instrument of its creation (such as the relevant Act, Articles of Incorporation), and specific facts and circumstances of the case.
- When dealing with a listed company, it is likely that there might be no beneficial owner(s), and a zero may be entered. The onus is on the company to investigate and disclose any beneficial owner(s).
- Find the updated guide here.
- Employer Filing Season 2025
- 31 May 2025 is the deadline to file the Employer's Annual Declaration.
- The information gathered during the Employer Annual Declaration period, the monthly declaration in EMP201 and reconciliation in EMP501 aids SARS to issue taxpayers with accurate auto-assessed or pre-populated Income Tax Return (ITR12).
- An enhanced version of the e@syfile™ Employer software (version 8.0) was introduced to improve filing.
- Employers can access the “how-to videos” uploaded onto the SARS TV YouTube Channel.
- The new e@syfile™ Employer v8.0 can be downloaded here.
- Practical implications on Finance Minister's
decision to reverse VAT
- The Minister of Finance has reversed the planned 0.5% VAT rate increase that was due to take effect on 1 May 2025. VAT will remain at 15%, not 15.5%.
- SARS will implement adjustments to accommodate the reversal. Vendors who have not yet implemented the rate change must cease all development in that regard. Vendors are required to continue charging VAT at 15% for goods and services.
- Limited time is allowed to adjust systems; vendors must ensure
proper reporting and payment of VAT. If a vendor cannot revert to
15% immediately due to system complexities:
- VAT may temporarily be reported at 15.5% until system adjustments are made.
- Adjustments must be completed by no later than 15 May 2025.
- VAT charged at 15.5% must be reported in:
- Field 12 for output tax, and
- Field 18 for input tax on the VAT return.
- Refund adjustments of the 0.5% difference to customers/suppliers must also be reported in fields 12 and 18. SARS will consider these declarations during verifications and/or audits for the affected VAT periods. VAT returns from tax periods commencing 1 May 2025 will auto-calculate VAT at 15%. Vendors who have already implemented the VAT rate change and zerorating must reverse those changes before 1 May 2025.
- Commissioner Kieswetter acknowledged the complexity and confusion and assured that SARS will provide further clarity to support vendors.
- For further information contact SARSMedia@sars.gov.za.
- Tables of Interest Rates
- SARS has updated and published the following tables of interest
rates:
- Table 1 – Interest rates on outstanding taxes and interest rates payable on certain refunds of tax; and
- Table 2 – Interest rates payable on credit amounts.
- Find the updated tables of interest rates here.
- SARS has updated and published the following tables of interest
rates:
- Trade statistics for March 2025
- On 30 April 2025, SARS published a media release stating inter alia that South Africa recorded a preliminary trade balance surplus of R24.8 billion in March 2025.
- This surplus was attributable to exports of R172.5 billion and imports of R147.7 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia.
- Find the media release here.
- Tax Declarations with SARS Online Query System
- Taxpayers will now be able to submit Donations Tax and Withholding Tax on Royalties declarations online through the SARS Online Query System via the SARS website.
- This platform streamlines tax declarations with automated systems and improved efficiency.
- Find the digital channels webpage for more information here.
exchange control
- The South African Reserve Bank has published Exchange Control
Circular No. 7/2025, which relates to the amendment of the name Old
Mutual Bank Limited to OM Bank Limited as a Restricted Authorised
Dealer in foreign exchange.
- Find a copy of the circular here.
customs and excise
- Customs and Excise Act | Tarriff Amendments
- The tariffs amendments notices published in the Government
Gazette relate to the following amendments:
- Notice R.6153 - Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA) (with retrospective effect from 1 September 2024 up to and including 31 December 2024)
- Notice R.6155 - Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SACUM-UK EPA) (with retrospective effect from 1 September 2024 up to and including 31 December 2024)
- Notice R.6152 - Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA) (with retrospective effect from 1 January 2025)
- Notice R.6154 - Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SACUM-UK EPA) (with retrospective effect from 1 January 2025)
- Notice R.6164 – Part 3 of Schedule No. 2, by the insertion of various items under item 260.03, in order to implement safeguard measures on the importation of hot-rolled steel products classifiable under Chapter 72 at a rate of 13% (ITAC Report No. 740) (up to and including 1 May 2026).
- Notice R.6165 – Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to reduce the rate of safeguard measures on the importation of hot-rolled steel products classifiable under Chapter 72 from 13% to 11% (ITAC Report No. 740) (with effect from 2 May 2026 up to and including 1 May 2027).
- Notice R.6166 – Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to reduce the rate of safeguard measures on the importation of hot-rolled steel products classifiable under Chapter 72 from 11% to 9% (ITAC Report No. 740) (with effect from 2 May 2027 up to and including 1 May 2028).
international
- Organisation for Economic Co-Operation and Development
(“OECD”) | Multilateral Convention
- Côte d'Ivoire joined as 150th signatory to Multilateral Convention.
- The signing paves the way for Côte d'Ivoire to engage in the exchange of information with 149 other jurisdictions, including all major financial centres. These exchange relationships will be added to the over 8000 exchange relationships already in place under the Convention.
- The Convention enables jurisdictions to engage in a wide range of mutual assistance in tax matters: exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection.
- 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.
