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2025 Legal and Policy

Legal and Policy - 22 May 2025

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Legal and Policy - 22 May 2025

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SARS

  • 15 May 2025 – SARS invites you to tender for the goods and/or services as detailed in RFP05/2025. The conditions in the SARS Chain Management Policy and the Regulatory Framework which governs tenders at SARS are applicable to this tender process.
  • 16 May 2025 – This is yet another edition of SMME Connect to keep you informed of tax topics and SARS initiatives relevant to you. The information in this newsletter will help you meet your tax obligation easily.

SARSTC 45840 (ADM) [2025] ZATC CPT (15 April 2025)

SARSTC IT 46151 (ADM) [2025] ZATC BFN (14 April 2025)

SARSTC VAT 22504 (VAT) [2025] ZATC JHB (7 March 2025)

SARSTC IT 35476 (ADM) [2025] ZATC JHB (25 February 2025)

Summaries are available on the Tax Court Judgments page

Draft Tax Exemption Guide for Benefit Funds

Draft Guide to Section 18A Approval for Specific United Nations Entities

Due date for comment: 27 June 2025

  • 16 May 2025 — The South African Revenue Service (SARS) hosted the 41st Regional Steering Group of the World Customs Organization (WCO) East and Southern Africa region (ESA) from 12–14 May, and the 31st Governing Council from 15–16 May 2025. The meetings reviewed key developments for the 2024–2025 reporting period and finalised the new ESA Regional Strategy (2025–2028). The meeting was attended by member customs administrations, regional entities, and other partners. It underscored participants’ strong commitment to strategic reform, capacity-building, and regional integration.

The meeting highlighted the central role played by customs administrations in facilitating trade, mobilising resources, and protecting society. A high-priority topic was the Trade Facilitation Agreement, which will help to lower trade barriers and eliminate inefficiencies, such as non-tariff barriers which raise costs and hinder economic integration. As a key enabler of trade, the WCO is a critical voice supporting Africa’s participation in global trade and international agreements. The adoption of the African Continental Free Trade Area is a milestone for intra-African trade. However, its success depends on the capacity of customs administrations to eliminate non-tariff barriers and facilitate seamless cross-border movement. To achieve this goal, Ashor Sarupen, South Africa’s Deputy Minister of Finance, pointed to tools such as enhanced connectivity, pre-arrival processing, and Authorized Economic Operator programmes as fundamental to the agenda. He noted that these require sustained investment in digital systems and modern infrastructure to remain effective. Equally challenging, is to deal with the rapid growth of e-commerce, which is straining existing customs systems.

Ian Saunders, WCO Secretary-General, spoke of the WCO’s contribution to developing responsive, inclusive policies that reflect the needs of diverse regions. This year marks a period of transformation in how the WCO engages with its members. Central to this transformation is the development of the WCO Strategic Plan, set to be finalised in 2025. This landmark plan is aligned with the year’s overarching theme of meaningful, member-driven change anchored in modernisation and collaboration. Efforts to strengthen the WCO’s operations, supported by the endorsed proposals and budget allocations, are progressing in tandem with its strategy. Concluding, the Secretary-General said that “the WCO remains committed to transparency, precision, and accountability underpinned by customs delivering on its commitment to efficiency, security, and prosperity”. SARS Commissioner Mr Edward Kieswetter underscored the importance of the WCO ESA region, a bloc of 24 countries facing shared challenges and opportunities. The region remains relatively stable, rich in natural resources, and primed to harness its demographic dividend. Success will require coordinated strategy, innovative thinking, and a collective commitment to mutual growth. Customs administrations must integrate, use data, unlock the potential of e-commerce, and deepen partnerships with the public and private sectors. Through unity and bold collaboration, the ESA region can win progress toward a more connected and prosperous future.

Continuing the Commissioner observed that the African Continental Free Trade Area calls for revisiting traditional customs practices and embracing innovation. Importantly, the WCO was called upon to use its capacity to drive greater alignment with emerging global trends and deeper collaboration between the public and private sectors. Customs administrations must oversee trade, which is not only efficient, but also fair, contributing to more resilient and inclusive economies. The meeting concluded that modern customs operations must help to reduce tax leakages, lower trade costs, and expand the corporate tax base. Digital systems accelerate trade processes, while regional harmonisation integrates markets and boosts competitiveness. By strengthening customs, the meeting observed, countries can unlock the full benefits of trade under the African Continental Free Trade Area. Finally, the Commissioner said that “undeniably, customs administrations globally are undergoing a period of unprecedented transformation, shaped by technological disruption, evolving risks, and geopolitical instability. While these changes present significant challenges, they also offer opportunities to build resilient, future-ready institutions, provided they are approached through structured reform, guided processes, and enhanced regional cooperation”.

The conference concluded the 31st Governing Council by convening elections, which saw South Africa elected unanimously to the position of Vice-Chair of WCO ESA that would take effect from 1 July 2025. As Vice-Chair, South Africa is expected to strengthen the governance arrangements and improve the sustainability of the regional office whilst steering the implementation of the region’s strategic priorities, including digital transformation, customs modernisation, revenue mobilisation, and regional cooperation as well. This role enhances South Africa’s global influence and standing. Madagascar was elected as Deputy Vice-Chair and Kenya as an Additional Member to the WCO Policy Commission. For further information, please contact SARSMEDIA@sars.gov.za.

  • 19 May 2025 – The state provides state warehouses for the safekeeping of goods. These are managed by Customs. The purpose of this list of unentered goods is to notify the importer, exporter and any other person that has interest in the goods that the goods have been taken up into the State warehouse and if they remain unentered they will be disposed in accordance with the provisions of the Customs & Excise Act.

See the latest Customs Weekly List of Unentered Goods here.

  • 19 May 2025 – This update requires a full uninstall and reinstall from the eFiling website.

The following changes were made in version 8.0.0_259:

Enhancement made for payroll import files to align with SARS PAYE BRS. Certain certificates (IRP5/IT3(a) are not being successfully imported into the e@syFile TC application, and this has been corrected.

Enhancement made for manual capture of source code 3926 to align with SARS PAYE BRS.

Enhancement made to e@syFile Installation Screen Messaging

See more detail in the release notes.

  • 19 May 2025 – Value-Added Tax Act, 1991

Draft Binding General Ruling 4 (Issue 4) – Apportionment methodology to be applied by a municipality

Due date for comment: 20 June 2025

  • 20 May 2025 – National Legislation

Final Response Document – 2024 Draft Revenue Laws Amendment Bill, 2024 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2024 Draft Taxation Laws Amendment Bill, 2024 Draft Tax Administration Laws Amendment Bill, Global Minimum Tax Bill and Global Minimum Tax Administration Bill – October 2024

20 May 2025 – National Legislation: National Treasury issued the following explanatory memoranda:

2025:

Explanatory Memorandum on Amendments to the Regulations Prescribing Electronic Services for the Purpose of the Definition of “Electronic Services” in Section 1(1) of the Value-Added Tax Act, 1991

Explanatory Memorandum on Amendments to the Regulations on the Domestic Reverse Charge relating to Valuable Metal issued in terms of Section 74(2) of the Value-Added Tax Act, 1991

Explanatory Memorandum on Regulations on Determining the VAT Liability in respect of Casino Table Games of Chance, issued in terms of section 74 of the Value-Added Tax Act, 1991

Explanatory Memorandum on the Carbon Offset Regulations under the Carbon Tax Act, 2019

2024:

Explanatory Memorandum on Revenue Laws Amendment Bill, 2024 – Savings Pension

Explanatory Memorandum on the Taxation Laws Amendment Bill, 2024

Explanatory Memorandum on the Global Minimum Tax Bill, 2024

  • 21 May 2025 – SARS is aware of an issue causing PDFs not to appear as an option on the file-selection screen on SOQS. To upload your PDF files, please change the filter to “All Files” on the file-selection screen. This will allow you to select and upload your PDF documents without any issues. We are resolving this matter and apologise for the inconvenience.
  • 21 May 2025 – Value-Added Tax Act, 1991

SARSTC VAT 22315 (VAT) [2025] ZATC JHB (25 April 2025)

VAT input tax deduction on import – point in limine in terms of section 54(2A)(a) of the VAT Act – whether the appellant is entitled to VAT input tax, in the amount of R26 901 845.85.

  • 21 May 2025 – Finance Minister Enoch Godongwana is delivering the National Budget speech today. For the updated Budget Tax Guide and more information, see our Budget webpage.
  • 21 May 2025 – The South African Revenue Service (SARS) recognises the funding challenges that the country faces. We are steadfast in our commitment to serve the nation with integrity and efficiency. SARS plays a vital role in the collection of revenues that support the delivery of public services. We accept the responsibility to achieve the 2025/26 revenue estimate presented by the Finance Minister Mr Enoch Godongwana.

The Minister, in his Budget Speech today, announced the 2025/26 financial-year revenue estimate of R1.986 trillion. This revenue estimate comes against the backdrop of SARS’s final unaudited revenue outcome for 2024/25, which is R1.86 trillion, R8.9 billion more than the Revised Estimate.

2025 Budget Overview.

It is worth noting there are key shifts in the global economic assumptions, which has seen a downward revision by the International Monetary Fund such as the global economic growth outlook of 3.3% to 2.8%. The global revision has a direct effect to the local economic assumptions for 2025/26 that speaks to lower nominal GDP, as well as the Consumer Price Inflation against March Budget 2025. Nominal GDP for 2025/26 has been revised downwards to R7.87tr (+6.3% y/y) from the reported R8.00tr (+7.0% y/y) in the Budget 2025 and R8.02tr (+6.5%) in the MTBPS 2024. In real terms, the economy is projected to grow by 1.5% in 2025/26, down from 1.9% and 1.6% in Budget 2025 and the MTBPS 2024 respectively. The downward revised outlook reflects a weak outlook for major trading partners and low potential growth amid escalating trade tensions, financial market adjustments, and a highly unpredictable environment. Additionally, the outlook is reflective of persisting domestic economic structural issues, such as integrated logistical network limitations.

Given the current tough domestic and global economic conditions, the R1.986 trillion revenue estimate is a challenging estimate. The estimate announced by the Minister imposes the responsibility on SARS to implement revenue raising initiatives. Debt collection is one such, therefore SARS will specifically accelerate work on collecting all debt, with a specific focus on undisputed debt. SARS acknowledges South Africa’s economic difficulties and the effect that this will have on the aggregate amount of debt collected. The mandate of SARS is anchored on revenue collection, compliance enhancement and the facilitation of legitimate trade. Importantly, this encompasses analysis of the economic performance and how such performance will impact tax and customs revenue collections. By dutifully implementing its compliance programme, SARS is well positioned to collect all revenue due to the fiscus. In implementing the compliance programme, SARS moves from the premise that taxpayers are honest and want to be assisted to meet their legal obligation. To do so, SARS provides clarity and certainty to taxpayers to meet their obligations and to make it easy and seamless to transact with the organisation. Where necessary, SARS enforces legal obligations responsibly.

Fiscal citizenship, and our country’s sovereignty to determine our own destiny, requires that we work to mobilise domestic resources to fund our priorities. SARS’s legal mandate enables the government to fund essential services. These services sustain the most vulnerable among us, putting children through school, paying pensions, disbursing child grants, and cushioning the unemployed. While SARS strives to give legal clarity, it upholds the rights of taxpayers to exercise those rights in law as well. These rights inter-alia include asking for payments to be deferred or paid in instalments, or to dispute the debt. Undeniably, the path ahead will be challenging as we seek to encourage taxpayers to voluntarily settle their outstanding debt and returns. SARS urges taxpayers to work with us in settling outstanding debt. We also assure those taxpayers who are compliant that we will use all legal instruments to share the tax burden fairly by addressing non-compliance. In the financial year 2024/2025, SARS helped to mitigate a stubbornly high unemployment rate by recruiting and training over 800 new employees to collect debt. This work started with a telephone call and where necessary, included the employment of legal instruments to taxpayers who are indebted to the organisation. This information is based on insights from third party data sources.

SARS has taken valuable lessons from the 2024/25 debt-collection drive. These efforts must result in a minimum collection of R20 billion. To meet its revised revenue estimate this year, SARS is:

Refining and using advanced data analytics and artificial intelligence to detect tax-compliance risks, close the tax gap, and improve overall compliance rates. By integrating expanded third-party data sources, such as banking and payroll information, the system can increasingly automate tax assessments and more effectively identify underreported income, thereby strengthening efforts to combat tax evasion.

Combating the illicit economy, especially in high-revenue sectors such as tobacco, alcohol, and fuel. Through enhanced enforcement against smuggling, counterfeit goods, and black-market transactions, SARS aims to recover substantial revenue losses and deter future non-compliance within these sectors of the informal economy.

Broadening the tax base by systematically identifying and registering individuals and businesses that have previously operated outside the formal tax system. Targeting the hard-to-tax sectors in the informal economy, particularly small enterprises and self-employed individuals, supports increased revenue mobilisation and helps to reduce reliance on a narrow tax base.

Closing the tax gap by investing in advanced skills and systems.

SARS Commissioner, Mr Edward Kieswetter said that “the increased revised revenue estimate means that SARS must do more to realise a better life for all South Africans. Indisputably, SARS plays a transformative and catalytic role in funding about 90% of government expenditure, which is essential to the delivery of old age pension grant, health services and the provision of social services without which many of our fellow citizens will be destitute. It is the responsibility we embrace with humility, and we will endeavour to achieve”. “My sincere gratitude goes to the compliant taxpayers and traders, who have continuously played their part in building our country, Ndza khenza. To all SARS employees, your hard work and perseverance shine bright. The tax revenue you collect is the lifeblood that enables government to build a capable State. I salute you! – he concluded”. For further information, please contact SARSMedia@sars.gov.za

  • 21 May 2025 – Achieving our Vision of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness, and security. In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust, and secure, by performing regular upgrades, enhancements, and maintenance. Considering the above, SARS Digital platform upgrades are scheduled for: Friday, 23 May 2025 from 20h00 to 02h00 Saturday, 24 May 2025. During this time, you may experience intermittent service interruption on our eFiling, Tax and Customs Digital Platforms.

NATIONAL TREASURY

SAFLII

ATAF

SARB

Exchange Control Circular No. 8-2025 – 19 May 2025

AuthorSAICA Legal and Policy
DivisionTax
Categories
Legal and Policy
Date22 May 2025