Africa Tax In Brief

Below, please find issue 170 of ENS’ tax in brief, a snapshot of the latest tax developments in South Africa.

case law

Constitutional Court | Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service [2026] ZACC 24

• The appeal concerned whether the phrase “which has not undergone any manufacturing process other than the refining thereof or the manufacture or production of” certain prescribed forms of gold precluded recycled or second-hand gold from being zero-rated under section 11(1)(f) of the Value-Added Tax Act, 1991 (“VAT Act”) when supplied to the South African Reserve Bank, the South African Mint Company (Pty) Ltd or a South African registered bank.
• Lueven Metals (Pty) Ltd argued that the provision required that the gold to be supplied must be in a prescribed (unwrought) form and must be supplied to a prescribed purchaser, irrespective of any prior manufacturing processes.
• The Constitutional Court held that section 11(1)(f) requires that the gold must not have undergone any manufacturing process other than refining or manufacture into one of the prescribed forms. It was held that recycled or second-hand gold had undergone disqualifying historical manufacturing processes and therefore does not qualify for zero-rating under section 11(1)(f).
• The appeal was dismissed with costs, including the costs of two counsel.
• Find copy of judgment here.

legislation and draft legislation

• Income Tax Act, 1962 (“ITA”) | Draft Amendment to Rules under section 18A (2B) and (2C)
  • The proposed draft rules provide information required in a certificate as specified in terms of section 18A(2B) and (2C) of the ITA.
  • Comments are due by 17 July 2026
  • Find a copy of the draft amendment to the rules here.
• Tax Administration Act, 2011 (“TAA”) | Extending date to request reduced assessment or additional assessment for auto-assessments
  • The notice extends the deadline to 23 October 2026, by which a taxpayer, eligible for automatic assessment under paragraph 3(3) of the Notice to Submit Returns, published in terms of section 25 of the ITA may request SARS to make a reduced or additional assessment.
  • The extension does not apply if the date of the automatic assessment is after 27 August 2026.
  • Find a copy of the notice here.
• VAT Act | Draft Regulations and Draft Explanatory Memorandum
  • SARS has published the Draft Regulations and Draft Explanatory Memorandum relating to the domestic reverse charge mechanism for valuable metal.
  • The draft regulations are issued in terms of section 74(2) of the Value-Added Tax Act, 89 of 1991.
  • The due date for comment is 30 June 2026. o Find the draft regulations and explanatory memorandum here.
  • Income Tax Act, 1962 | Living annuity notice o SARS has published a notice in terms of paragraph (c) of the definition of “living annuity” in section 1(1) of the ITA. o The notice withdraws all previous notices issued in terms of paragraph (c) of the definition of “living annuity” and prescribes that the amount referred to in that paragraph is R150 000.
  • Find the notice here.

SARS publications

• Tax Practitioner Connect | Issue 72 – June 2026
  • o This Issue covers Global Minimum Tax requirements, Filing Season 2026 changes, updates to the PAYE Employer Reconciliation BRS, improvements to the AA88 Employer Guide, a webinar recording on EMP501 submissions, updates to the Tax Directive functionality on eFiling, and the importance of confirming contact details on eFiling.
  • The Issue also highlights taxpayer protection and awareness initiatives, including the latest scam alert on “Tax Settlement Notification” and a new step-by-step video on how to report unprofessional conduct.
  • Find more information here.
• Guide on the Determination of Medical Tax Credits | Issue 18
  • This guide provides general guidelines regarding the medical scheme fees tax credit and additional medical expenses tax credit for income tax purposes.
  • Find a copy of the guide here.
• Guide on Income Tax and the Individual (2025/26) | Issue 1
  • The purpose of this guide is to inform individuals who are South African residents of their income tax commitments under the Income Tax Act 58 of 1962.
  • Please find a copy of the guide here.
• VAT Reference Guide | Schools Exiting the VAT System | Issue 1
  • This reference guide provides information and guidelines regarding the value-added tax implications for schools that cease to be vendors, effective from 1 January 2026, because of the amendments to the Value-Added Tax Act 89 of 1991.
  • Find a copy of the guide here.
• Updated average Exchange Rates published
  • Table A – A list of the average exchange rates of selected currencies for a year of assessment as from December 2003.
  • Table B – A list of the monthly average exchange rates to assist a person whose year of assessment is shorter or longer than 12 months.
• Updated Interest Rates Table 3 published
  • Table 3 – SARS has updated Interest Rates Table 3, which deals with rates at which interest-free or low interest loans are subject to income tax.
  • The update follows the South African Reserve Bank’s change to the repo rate on 29 May 2026, effective from 1 June 2026.

• SARS has updated its Business Requirements Specification (BRS) for PAYE Employer Reconciliation 2026/2027
  • Enhancements:
    • Employee Identification Data (New Source Codes – V25.0.0, February 2026): Added new fields for Additional ID Number (3061), Expired Asylum Seeker Permit Number (3067), Expired Passport Number (3071), Expired Passport Country of Issue (3076), and Country of Birth (3081), applicable to the ITREG certificate type.
    • Employee Remuneration Data (New Deduction/Information Codes – from 2026 YoA): Added source code 4042 (s11(nA) recoupment deduction), source code 4588 (total amount repaid by employee for s11(nA) recoupment), and source code 4589 (total amount repaid by employee for s11(nB) recoupment, i.e. restraint of trade).
    • Reason Code for IT3(a) (Code 4150): Added new value 10, applicable from 2026 year of assessment, for circumstances where no tax is to be withheld due to a Section 11(nA) deduction or a Section 11(nA) recoupment from an ex- employee in a subsequent transaction year.
    • Lump Sum Codes (Code 3926 – from 2025 YoA): Added Savings Withdrawal Benefit source code for withdrawals from a Retirement Fund Savings Component/Pot.
    • Validation Changes (V25.1.0 – V25.3.0): Updated validation rules for source codes 3040, 3067, 3622/3672, 3696, 3698, 3699, 3835/3885, 3922, 4118, and 4150, including revised thresholds for non-taxable income (R5,000/R16,000 for YoA ≤2026/≥2027 for codes 3622/3672 and 3835/3885) and compensation on death (R300,000/R800,000 for YoA ≤2026/≥2027 for code 3922).
    • Description Changes: Updated descriptions for source codes 3060 (Identity Number) and 3620/3670 (NED Directors / Audit Committee Member Fees), as well as code 4150 (Reason code for IT3(a)).
    • Removals: Removed the Employer Contact Person: Fax No field (code 2039) and removed source code 4590 (total amount reimbursed to the employee for kilometers travelled in the previous tax year), which had been introduced in V25.1.0 but was withdrawn in V25.2.0.
  • Find the updated guide here.
• Global Minimum Tax Updates
  • SARS has published updates relating to the Global Minimum Tax (“GMT”) return process.
  • A Multi-National Enterprise (“MNE”) must submit the Global Minimum Tax Return (GMT01), together with the Global Minimum Tax Declaration form (GMT02) and the relevant tax calculation for the fiscal year of liability.
  • SARS confirmed that GMT returns are generally due 15 months after the end of the relevant fiscal year, or 18 months after the end of the first fiscal year commencing on or after 1 January 2024 but before 1 January 2025, where the MNE group is liable for top-up tax and is not required to submit a GMT return for a previous fiscal year in another jurisdiction.
  • SARS has also developed a new guide to submit GMT returns on eFiling and updated the SARS Payment Rules guide, available here.
  • Find more information regarding the above GMT update here.
• Get ready for Filing Season 2026
  • SARS has published information on Filing Season 2026 and has advised taxpayers to update their personal and banking details online.
  • The key dates are as follows: ▪ Auto Assessments: 1 July to 12 July 2026. ▪ Non-provisional individual taxpayers: 13 July to 23 October 2026.
    • Provisional taxpayers: 13 July 2026 to 22 January 2027.
    • Trusts: 13 July 2026 to 22 January 2027.
  • SARS has indicated that the 2026 Filing Season will include more prefilled data, simpler questions, improved guidance on residency status, easier medical aid selection, WhatsApp functionality for certain assessment and statement of account services, an updated ITR12 look and feel, and a new declaration alert questionnaire intended to reduce verification issues.
  • Find more information here.

customs and excise

• Customs and Excise Act, 1964 | Rule Amendments 2026
  • Notice R.7604
    
    • Amendments to rules under section 120 - Advance import payments (DAR274).
    • With effect from 19 June 2026
  • Notice R.7607
    
    • Correction notice - Rules under sections 46A, in relation to the non-reciprocal zero-tariff treatment for goods exported from the Republic of South Africa to the Peoples Republic of China.
    • With retrospective effect from 1 May 2026.
  • Notice R.7622
    
    • Amendments to rules under sections 15 and 120 - Electronic South African traveller management system (DAR275):
      • TD 01 – Traveller declaration.
      • TGD1 – Traveller goods declaration.
    • With effect from 1 July 2026
• Tariffs Amendments
  • Notice R.7605
    
    • Amendment to Part 1 of Schedule No. 3 by the deletion of various items under rebate items 316.01 and 316.09 as well as the insertion of various items under rebate items 315.15, 316.01 and 316.09, in order to allow for a rebate provision on additional components for cooking and cooling appliances (Addendum to ITAC Report 692)
• Notice R.7606
  
  • Imposition of provisional payment in the form of anti-dumping duty against the alleged dumping of tubes and pipes having circular cross-section, with an external diameter which exceeds 406,4 mm of iron or steel (excluding longitudinally submerged arc welded and longitudinally welded pipes), classifiable in tariff subheading 7305.19 originating in or imported from the Republic of Mozambique (ITAC Report 779)
• Tariffs Amendments
  • Notice R.7533
    
    • Amendment to Part 1 of Schedule No. 1, by the substitution of tariff subheading 7302.10 in order to increase the rate of customs duty on rails from 5% to 10% (ITAC Report 751)
    • Amendment to Schedule No. 1, by the substitution of General Note N in order to amend the re-allocation of TRQ’s on cheese and cereal based preparations pertaining to the SACUM-UK
    • With retrospective effect from 1 September 2025 up to and including 31 December 2025.
  • Notice R.7582
    
    • Amendment to Part 1 of Schedule No. 2, by the substitution of item 207.01/3907.6/03.05 in order to increase the rate of anti-dumping duty on polyethylene terephthalate originating in or imported from the Peoples Republic of China from 28,89% to 43,77% (ITAC Report No. 770)
    • Implementation date 12 June 2026.
  • Notice R.7579
    
    • Amendment to Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to implement safeguard duty of 22,34% on flat-rolled products of iron or non-alloy steel, and flat-rolled products of other alloy steel classifiable under Chapter 72 (ITAC Report No. 768)
    • With effect from 12 June 2028 up to and including 11 June 2029
  • Notice R.7580
    
    • Amendment to Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to implement safeguard duty of 37,34% on of flat-rolled products of iron or non-alloy steel, and flat-rolled products of other alloy steel classifiable under Chapter 72 (ITAC Report No. 768)
    • With effect from 12 June 2027 up to and including 11 June 2028
  • Notice R.7581
    
    • Amendment to Part 3 of Schedule No. 2, by the insertion of various items under item 260.03, in order to implement safeguard duty of 52,34% on flat-rolled products of iron or non-alloy steel, and flat-rolled products of other alloy steel classifiable under Chapter 72 (ITAC Report No. 768)
    • Up to and including 11 June 2027
  • Notice R.7583
    
    • Amendment to Part 2 of Schedule No. 4, by the insertion of rebate item 460.15/7604.29/01.06 in order to create a rebate provision for the importation of profiles of aluminium-copper- magnesium-zinc alloys classifiable in tariff subheading 7604.29 (ITAC Report No. 747)
    • Implementation date 12 June 2026
• Customs and Excise Act, 1964 | Draft rules amendment
  • SARS has published a draft rules amendment notice under sections 39, 101A and 120 of the Customs and Excise Act, 91 of 1964.
  • The amendments relate to invoice data and customs worksheet data.
  • Publication details will be made available later, with effect from 3 July 2026.
  • Find the draft rules amendment here.
    • Customs | Update to Traveller Processing External Policy
  • With effect from 1 June 2026, all drivers entering South Africa with vehicles for temporary importation are required to declare those vehicles at the port of entry. This replaces the previous requirement that applied only to vehicles registered outside of the Southern African Customs Union (“SACU”) and now includes SACU- registered vehicles.
  • Also see the Customs Online Traveller Declaration webpage for the different ways of declaring online.
  • Find the updated policy here.
• China Zero-Tariff Preference Scheme | Implementation update and correction notice
  • SARS has published further guidance on the implementation of China’s Zero-Tariff Preference Scheme, which came into effect on 1 May 2026, along with a correction notice (Notice R.7551, published in Government Gazette 54776 of 3 June 2026) correcting the rules under sections 46A and 120.
  • SARS confirmed that, from 1 June 2026, it will issue Rules of Origin certificates for qualifying exports. Goods shipped or cleared on or after 1 May 2026 will not be disadvantaged, as certificates may be issued retrospectively for qualifying goods.
  • Exporters are reminded that not all goods qualify for the zero-tariff arrangement, as certain goods remain subject to tariff-rate quotas or specific conditions. Qualification depends on compliance with the relevant Rules of Origin and presentation of a valid SARS Certificate of Origin.
  • Find the FAQs, steps to apply and contact details here, and the correction notice here.