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Tax Administration & Interpretation
(SARS and Office of the Tax Ombud)

​Frequenty asked questions: Supplies of electronic services

The regulations prescribing electronic services for the purpose of the definition of “electronic services” in section 1(1) of the Value-Added Tax Act 89 of 1991 (the VAT Act1 ) in Government Notice 429 of 18 March 2019 (Updated Regulations). The Frequently Asked Questions (FAQs) in this document have been compiled on the basis of questions that vendors and the public at large are likely to have about the implications of the Updated Regulations and the amendments.

SARS
CRS Regulations Draft New Regulations May 2019

Regulations for purposes of paragraph (a) of the definition of “International Tax Standard” in section (1) of the Tax Administration Act, 2011 (Act no. 28 of 2011), promulgated under section 257 of the act, specifying the changes to the OECD standard for automatic exchange of financial account information in tax matters

SARS
Notice 684 GG 42464 17 May 2019 Notice to submit EMP501

Notice 684, as published in Government Gazette 42464, prescribing the dates upon which employers must furnish returns (EMP501s) in terms of: paragraph 14(3)(a) of the Fourth Schedule to the Income Tax Act, 1962; section 8(2A) of the Unemployment Insurance Contributions Act, 2002; and section 6(2A) of the Skills Development Levies Act, 1999.

SARS

TAX CASES

TCIT 13988 CPT 1 November 2018

Income tax; section 24C; loyalty programme; whether the Appellant was entitled to a section 24C allowance in respect of a loyalty programme it administered

SARS Court Cases
ABC (Pty) Ltd and C:SARS (IT14426) - 13 December 2018

This appeal is concerned with the application of provisions of the Employment Tax Incentive Act 26 of 2013 (the Act), which provides for an employment tax incentive (“ETI”) in the form of a deduction from the employees’ tax (“PAYE”) payable to the employer to support the creation of new jobs for employees under the age of 30 years.

SARS Court Cases
Tax Payer v Commissioner for the South African Revenue Service (VAT1558) [2018] ZATC 3 (5 December 2018)

This matter is concerned with the interpretation and application of s 8(15) of the Value-Added Tax Act 89 of 1991 (‘the Act’). It takes the form of an appeal against additional Value-Added Tax (‘VAT’) assessments raised by the respondent, the Commissioner for the South African Revenue Service (‘CSARS’), against the appellant, …, in the amount of R3 444 764 for its 06/2009, R4 631 620 for its 06/2010 and R5 932 209 for its 06/2011, VAT periods and interest.

SARS Court Cases

Legislative & Policy
(National Treasury & Parliament)

Nugent Commission Report pages 197 and 198
Treasury
Consolidated Regulations After Amendments to Regulations: Electronic Services for the Purpose of the Definition of "Electronic Services" in Section 1(1) of the Value-Added Tax Act
Treasury
Explanatory Memorandum: Regulations Prescribing Electronic Services for the Purpose of the Definition of "Electronic Services" in Section 1(1) of the Value-Added Tax Act, 1991
Treasury

Call For Comment
SAIT member comments can be directed to taxpolicyadmin@thesait.org.za

Income Tax Act, 1962

This BGR provides clarity on the no-value provision in respect of the rendering of transport services by an employer to employees in general, and must be read with BGR 42 dated 22 March 2017 “No-value provision in respect of transport services”. Next due date for comments: 21 January 2019 New!

SARS
Media Statement and related documents: Publication of the Draft Carbon Tax Bill for public comment

The Minister of Finance recently announced the implementation of the carbon tax effective from 1 June 2019. The Draft Carbon Tax Bill makes provision for the carbon offset allowance in terms of Section 13. The National Treasury today publishes the Draft Regulation on the Carbon Offset for a second round of public comment and further consultation. Next due date for comments: 14 December 2018

National Treasury
Inviting technical tax proposals for Annexure C of the 2019 Budget Review

National Treasury invites taxpayers, tax practitioners and members of the public to submit tax proposals of a technical nature (and not of a policy nature) to be considered for possible inclusion in Annexure C of the 2019 Budget Review. Next due date for comments: 23 November 2018.

SARS & National Treasury

International and Regional News
(OECD and ATAF)

OECD joins with Japan to fight financial crime by establishing new academy

OECD Secretary-General Angel Gurría and Japan’s Minister of Finance Taro Aso presided today over a signing ceremony to establish a new centre of the OECD International Academy for Tax Crime Investigation in Wako, Japan.

OECD
Implementation of tax transparency initiative delivering concrete and impressive results

International efforts to improve transparency via automatic exchange of information on financial accounts are improving tax compliance and delivering concrete results for governments worldwide, according to new data released today by the OECD.

OECD
International community agrees on a road map for resolving the tax challenges arising from digitalisation of the economy

The international community has agreed on a road map for resolving the tax challenges arising from the digitalisation of the economy, and committed to continue working toward a consensus-based long-term solution by the end of 2020, the OECD announced today.

OECD

CPD Events

PROFESSIONAL INSIGHT

Debt Benefit Amendments Regarding the Funding of Allowance Assets

Do the recent changes to the debt benefit regime relating to allowance assets achieve the intended result? Or is there still a possibility for tax avoidance in this area? Our article looks at a few scenarios.

Leanie Groenewald & Ruvé Van Rooyen - TaxTalk Magazine
The Latest Amendments: Foreign Companies Held by Foreign Trusts

Legislation that came into effect recently brought changes to the regime for foreign companies held by foreign trusts with South African beneficiaries. Our article examines the current position.

Professor Phillip Haupt - TaxTalk Magazine
Managing the Rising Costs of Healthcare Provision

Price rises in medical aid and medical costs can be potholes in the road to investing for the future. Find out how to manage these.

Lara Warburton - TaxTalk Magazine
Offshore Trusts

This five-part article looks at off shore trusts and basic considerations, tax emigration, the dividend participation exemption, funding a foreign trust and new substance rules.

Various Authors - TaxTalk Magazine
6 things you always wanted to know about investing in private equity & venture capital

Our article explores the somewhat unknown areas of private equity and venture capital investing by means of six simple questions.

Peter Nurcombe-Thorne - TaxTalk Magazine
Real Estate Investment Trusts

We provide a background to the position of real estate investment trusts in South Africa, explain how this has improved in a short time and we also look at future issues.

Estienne de Klerk - TaxTalk Magazine
Strike a Balance for Success

How to provide for short-term needs while not neglecting long-term provision for retirement. Our article provides some sage advice.

Janet Hugo - TaxTalk Magazine
Sugar Tax

In this two-part article, we provide commentary on the sugar tax as a health promotion measure by BDO’s Dr Ferdie Schneider and Chairperson of the SA Canegrowers Association Graeme Stainbank.

Various Authors - TaxTalk Magazine
Timing of tax on gift cards

The timing of income tax in relation to retailer gift cards was recently an issue in the interesting case in the Cape Town Tax Court, case number IT 24510, reported as A Company v The Commissioner for the South African Revenue Service (IT 24510) [ZATC] 1 (17 April 2019).

Ben Strauss - Cliffe Dekker Hofmeyr

Tax News In The Press

Tax Return Submission Raised to R500 000

Taxpayers with an annual income not exceeding R500 000 will no longer be required to submit tax returns.

All Africa
South Africa's Carbon Tax Raises Questions and Hot Air

As of Saturday 1 June, South Africa's government is taxing carbon. This policy is designed to make polluters pay and help the continent's most industrialised economy meet its targets to reduce the emissions of greenhouse gases linked by most scientists to climate change - the burning ecological issue of our era. But is it an appropriate policy for a developing economy with energy-intensive industries?

Ed Stoddard - Daily Maverick
PP vs Gordhan - Five Key Quotes From Mkhwebane's Report

Public Protector Busisiwe Mkhwebane has found against Public Enterprises Minister Pravin Gordhan in terms of his approval of the early retirement and payout of former deputy-SARS commissioner, Ivan Pillay.

News24Wire
Telkom's Turnaround Shows Potential for Privatising Tax-Guzzling SOEs

Unlike state-owned entities, Telkom is soaring and profitable. Although the telecoms group is still partially state-owned, it has managed to fashion a turnaround strategy that continues to pay off. Its success shows the potential to reform SOEs such as Eskom and SAA through privatisation, which might pave the way for their survival and less reliance on state coffers.

Ray Mahlaka - Daily Maverick
SARS closes Alberton branch due to fire

The South African Revenue Service has closed the Alberton branch following a fire breakout that damaged the 1st floor today, Monday 27 May 2019.The building was evacuated and no injuries were reported.

SARS
Tax Incentive Leads to the Evolution of a New Investment Class

Section 12J is quickly becoming an important diversification option, allowing investors to invest pre-tax funds into sectors which generally have significant upside potential. Diversification has been one of the catalysts to the growth of Section 12J, resulting in more than R3-billion being invested within the past financial year, increasing the total capital under management.

Jonty Sacks and Jarrod Higgs - Daily Maverick