Home
/
Resources
/
Tax
/
Legal and Policy
/
2025 Legal and Policy

Legal and Policy - 4 September 2025

Description

SARS

  • 27 August 2025 – In pursuing SARS’s strategic objective to work with and through stakeholders to improve tax ecosystem, Commissioner Kieswetter and his team held a consultative meeting with the Recognised Controlling Body Forum. This is a platform for strategic engagement between SARS and Recognised Controlling Bodies (RCBs). SARS sees this engagement crucial to its Higher Purpose: to help build a capable state and uplift South Africans.

The leadership of RCBs comprises the South African Institute of Taxation (SAIT); South African Institute of Chartered Accountants (SAICA); South African Institute of Public Accountants (SAIPA); Institute of Accounting and Commerce (IAC); Chartered Institute of Business Accountants (CIBA); Legal Practice Council (LPC); Chartered Government Institute of Southern Africa (CGISA); Financial Planning Institute (FPI); Chartered Institute of Management Accounting (CIMA); and Association of Chartered Certified Accountants (ACCA). The role and authority of RCBs are derived in law, especially in Chapter 18 of the Tax Administration Act. RCBs must strictly oversee the conduct of their tax practitioners to uphold trust and the integrity of the tax system. “As we expect of ourselves, and our own employees, the conduct of Tax Practitioners, must be irreproachable” said Commissioner Kieswetter. Tax practitioners are vital enablers of South Africa’s fiscal system and fiscal citizenship. In guiding taxpayers, they are also central to SARS’s strategic intent to promote voluntary compliance. As an ambassador for tax compliance, tax practitioners’ personal tax affairs must be compliant.

SARS and RCBs exchanged frank and robust conversations on crucial matters affecting them. They agreed that SARS must provide practitioners with clarity and certainty of their obligations, and make it easy for them to comply, especially when it comes to their registration to practice, as well as their ongoing renewal verification. SARS encouraged RCBs to obtain their members’ consent for compliance-status sharing. The meeting reaffirmed the critical role of SARS, and in this regard, the contribution of the profession, for the fulfilment of the organisations mandate to collect all revenue due, ensure optimal compliance with tax and customs legislation, protecting our borders, and facilitating legitimate trade. As co-regulators of tax practitioners and intermediaries in tax and customs, RCBs have a responsibility not only to comply with tax and customs laws themselves, but also to help their members who are practitioners, and the taxpayers whom they serve, to comply. And to do so without fear or favour in a manner that remains professional, and ethical.

On the Way Forward

This strategic partnership between SARS and RCBs, to improve compliance levels and raise revenue, especially from outstanding returns and debt already due. The success of this partnership ensures an equitable tax system where more taxpayers pay what is expected in law, instead of the burden being carried on by those who are complaint. The Commissioner called on RCBs’ Chief Executive Officers (CEOs) to work with SARS and assist to regularise the tax affairs of their members and clients. SARS and the RCBs agreed to explore ways in which the debt owed to the fiscus can be expeditiously collected within the provisions of the Tax Administration Act. To this end SARS has committed to expedite its processes to allow for collection of debt due.

The Commissioner appealed that the RCBs must assist to ensure that voluntary tax compliance is a standing boardroom agenda item. To strengthen ongoing collaboration, SARS & the RCB’s agreed to:

· Institute annual/bi-annual strategic engagements between the Commissioner and RCB CEOs.

· Reorient the Operational Forum to champion operational issues.

· Establish a Legal & Policy Committee to tackle legislative matters.

· Set up a technical committee to resolve system and data limitations.

For specific segments, SARS will re-establish a forum with its Large Business & International and High Wealth Individual segments. Regionally, SARS will re-orient the Regional Committees to deal with daily operational issues. SARS will also refine the Tax Practitioner Service Offering Model and engage with RCBs in its Modernisation Programme. Commissioner Kieswetter thanked the RCBs for their key role in helping the country mobilise resources to meet national challenges. He said that “both parties emphasised the importance of constructive engagement on the challenges that they face; continued collaboration; and open communication channels to foster a robust tax and customs environment. It is critical that we deepen voluntary compliance with concomitant benefit of fostering fiscal citizenship, moral and ethical conduct of the RCBs, tax practitioners and taxpayers”. Concluding, the Commissioner said, “SARS’ collection of more than R23.3 trillion since its inception, is in no small measure because of the crucial role played by the RCB’s”.

The RCB CEOs welcomed the engagement. They embraced the spirit of a productive partnership towards voluntary compliance. SAIPA’s representative Ms Tia van der Sandt, expressed her appreciation for “the opportunity to strengthen the relationship with SARS on behalf of our tax practitioners. We believe that we are collectively responsible for building our beautiful country. Ms Sesana of SAIT said her organisation “values collaboration with SARS highly because it is a bedrock of fiscal citizenship that is a cornerstone of a successful country”, and that “for SAIT, as the largest RCB, visiting the SARS Command Centre and seeing how AI and real time data is being leveraged to move the country forward was both eye opening and inspiring.” IACSA CEO, Mr Prakash Singh complimented “the healthy discussion on relevant topics that affects the greater of South Africa”. whilst the CEO of CIBA, Mr Nicholas van Wyk expressed his admiration and “was blown away by the level of SARS’s sophistication in monitoring its operations real time”. He believes “this sets a world-class standard of excellence, including in South Africa”, and appreciated SARS engagement with the RCBs and tax practitioners for viewing them “as strategic partners in mobilising resources for the country”.

This productive engagement has strengthened the relationship between SARS and the RCBs, with Commissioner Kieswetter making a clear point that “In order for us to work in a true partnership with the Registered Controlling Bodies, and their members who act as advisors and intermediaries for taxpayers, we must hold the profession to the same high standards of accountability, both legally and morally”. For further information, please contact SARSMedia@sars.gov.za.

· Interpretation Note 44 (Issue 3) – Public benefit organisations: Capital gains tax

· Interpretation Note 10 (Issue 4) – Skills development levy exemption: Public benefit organisations

  • 27 August 2025 – Skills Development Levies Act, 1999

· Interpretation Note 10 (Issue 5) – Skills development levy exemption: Public benefit organisations

  • 27 August 2025 – Income Tax Act, 1962

· Interpretation Note 44 (Issue 4) – Capital gains tax: Public benefit organisations

  • 27 August 2025 – Income Tax Act, 1962

· Draft Interpretation Note 64 (Issue 5) – Income tax exemption: Bodies corporate, share block companies, and associations of persons managing the collective interests common to all members

Due date for comment: 10 October 2025

  • 28 August 2025 – Customs and Excise Act, 1964: The tariffs amendments notice, scheduled for publication in the Government Gazette, relates to the amendments to –

· Part 2 of Schedule No. 4, by the insertion of rebate item 460.06/1511.90.90/01.08 in order to provide for a temporary rebate provision on palm oil, not fractioned, refined, bleached and deodorised, but not chemically modified, for use in the manufacture of soap and organic surface-active products and preparations, in the form of bars, cakes, moulded pieces or shapes, classifiable in tariff subheading 3401.1 (ITAC Report No. 738).

Publication details will be made available later

  • 29 August 2025 – Customs and Excise Act, 1964: Publication details for tariffs amendments notice R6550, as published in Government Gazette 53241 of 29 August 2025, are now available.
  • 29 August 2025 – South Africa recorded a preliminary trade balance surplus of R20.3 billion in July 2025. This surplus was attributable to exports of R184.3 billion and imports of R164.0 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).

See the full Media Release – July 2025 here.

Visit the Trade Statistics webpage.

  • 29 August 2025 – Taxpayers can now update their Security Contact Details using the link from the SARS website homepage www.sars.gov.za. When a request is made to update these details from the pre-login option, the facial biometric authentication feature is activated to verify the user’s identity. This ensures that updates are securely authorised and applied to the correct eFiler. In addition, this new quick link will help taxpayers who have challenges with receiving an OTP.

Direct link: Update contact Details.

This is where to locate the link on the SARS website homepage:

  • 29 August 2025 – Customs and Excise Act, 1964

· Assmang (Pty) Ltd v CSARS and Others (311/2024) [2025] ZASCA 121 (29 August 2025)

Customs and Excise Act 91 of 1964 – diesel refunds – rebate Item 670.04 in Part 3 of Schedule 6 of the Act – whether contracts on wet or dry basis – deductions from contractors’ invoices amounted to wet rates – compliance with record keeping obligations in Note 6(q) of Part 3 of Schedule 6 of the Act – failure to keep logbooks disentitles claim – constitutional challenge to section 47(9)(c) and section 75(1A)(f) of the Act – appeal dismissed with costs.

  • 1 September 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.

  • 2 September 2025 – The latest scam is an email prompting the recipient to click on a document to view it. The email subject line is ‘Administrative Penalty Charges’.

Please don’t click on the link, it’s a phishing website asking for your personal details. If in doubt, look at our Scams webpage with the latest examples and what to do when you receive a suspicious email.

  • 2 September 2025 – We are sharing a few tips to ensure a smooth onboarding process for your facility into the Customs Registration, Licensing and Accreditation (RLA) system on eFiling. This will ensure seamless process and minimise delays caused by incomplete or mismatched submissions. The following are needed for new and amendment applications:

For new applications for Warehouses and Rebates Facilities:

The following are required supporting documents as per Documentary Requirements as part of the SC-CF-19 – Registration Licensing and Accreditation – External Policy:

· Site plan

· Lease agreement

· Proforma agreement

· Financial documents:

    • Latest Annual Financial Statements (AFS) not older than 18 months, with comparative figures, signed by directors/members and auditors/independent reviewers as required by the public interest score. The AFS include:

§ Statement of financial position.

§ Statement of cash flows.

§ Statement of changes in equity/net assets; and

§ Accompanying notes.

For amending applications for Relocation or Extensions:

In terms of Rule 19.2 b client needs to “add” the address upon extension of warehouse application. Please have the following supporting documents handy:

· Site Plan

· Lease agreement

For the onboarding of Warehouses and Rebate Facilities:

· No Proforma Agreement required

· No Site Plan required

· Client to ensure the Duty and VAT limit equal the existing bond amount, even if the physical address should be the same. If a different limit is captured, the system will trigger the request for new bond to be submitted.

For more information, see the RLA webpage.

  • 2 September 2025 – Upon registration of the new or replacement bond clients need to check the following as it will ensure timely processing of the case and limit any amendments or rejection of the bond:

Is registered under the Financial Sector Conduct Authority (FSCA).

  • 2 September 2025 – SARS is realising its vision to become a smart, modern organisation with unquestionable integrity, trusted and admired by all. It is working hard to make it easy for taxpayers to comply with their legal obligations and to create an environment of voluntary compliance. Herewith Trust Income Tax 2025 Tax Season Updates as information for Trustees and Representatives:

Key Dates for Trust Tax Matters

· 31 August 2025: first provisional tax payment for the 2026 assessment year.

· 20 September 2025: opening date for ITR12T submissions.

· 30 September 2025: deadline for IT3(t) return submissions.

· 30 September 2025: top-up provisional tax payment for the 2025 assessment year.

· 19 January 2026: final deadline for provisional and non-provisional trust tax return (ITR12T) submissions.

· 28 February 2026: second provisional tax payment for the 2026 assessment year.

The appointed representative taxpayer (trustee or tax practitioner) must submit the ITR12T annually within the prescribed trust return filing period through SARS eFiling.

Below is an overview of important updates for the 2025 Trust Income Tax Season.

Legislative Changes

Definition of a Trust

The definition of a trust has been updated to include the underlined words below:

“trust” means any trust fund consisting of cash or other assets which are administered and controlled by a person acting in a fiduciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person, and includes a portfolio of a collective investment scheme and a portfolio of a hedge fund collective investment scheme. Please note that this amendment does not affect the ITR12T.

Section 6quat

With effect from 1 March 2025, section 6quat of the Income Tax Act (the ITA) has been amended for taxpayers to fully use foreign tax credits for the taxes paid on capital gains in the foreign jurisdiction, to the same extent as taxes paid in South Africa on the same gains. From the 2025 tax year, SARS will maintain any unused foreign tax credits to be carried forward automatically in the subsequent years of assessment, up to six years. In addition, section 6quat(1A) (a)(iii) clarifies the rebate for foreign taxes on income in respect of capital gains. To prevent double taxation on capital gains of residents due to the disposal of assets situated outside South Africa, section 6quat (1A)(a)(iii) of the Act provides for residents to claim a credit against South African tax for irrecoverable foreign taxes paid on these foreign-sourced capital gains.

Section 12H Learnership Agreement

The section 12H (of the ITA) Learnership Agreement termination date has been extended from 1 April 2024 to 31 March 2027.

Section 25B

Section 25B was amended to align it to paragraph 80 of the Eighth Schedule to the ITA by limiting the “flow-through” principle only to resident beneficiaries. This means that all amounts vested to non-resident beneficiaries are subject to tax in the hands of the trust. Note: this amendment will also affect the submission requirements for provisional tax (IRP6).

Form Changes

ITR12T Farming and Partnership Farming Auto-Calculator

· Income and Expense Declaration: taxpayers can declare income and expenses from farming operations, with each field previously requiring manual input, including opening balances.

· Under-Declaration Challenge: SARS was previously unable to proactively identify potential under-declarations because information was captured manually.

· Auto-Calculation Amendment: the form now allows for automatic calculation of amounts, which will be stored for pre-population in future returns.

· Pre-Population Feature: the system will extract previous IT48 and IT48V assessed information (balances) and prepopulate this information in the current year return.

· Enhanced Reporting: improved tax reporting for trusts relating to local farming operations and local farming partnerships.

Wizard Question on ITA Section 25B(4)-(6) — Limitation of Losses

A new question is introduced in the wizard to ascertain if any amounts vested are subject to section 25B(4)-(6). This information will help SARS design future iterations of the return that may provide for these scenarios.

Flow-through of Capital Losses

The flow-through of capital losses is not permitted under paragraph 80 of the Eighth Schedule to the ITA. However, in a trust environment, there may be cases where this rule may not apply, e.g. in the case of a bewind or vesting trust. The ITR12T is amended to provide for such scenarios. Subsequently, a new wizard question is introduced for the trustees to declare if the trust is a bewind or vesting trust.

Type (b) Special Trusts (Only when a Trust Is Classified as Such)

A new question is introduced in the wizard that requires confirmation from the trustees that the youngest beneficiary has not yet reached the age of 18 on the last day of the year of assessment. Based on the answer to the wizard question, the trustee will either be redirected or allowed to continue with the completion of the form.

Beneficial Ownership

· Deceased founders: the form is amended to provide for scenarios where the founder is deceased. A tick-box is included for this purpose.

· Unnamed beneficial owners: the form is amended to provide for scenarios where the beneficial owners — usually beneficiaries — are unnamed or a class of beneficiaries. A free text box is included to provide for the details of these unnamed beneficiaries.

Further Information

· After submitting the ITR12T, you will receive a survey about your experience. Please complete the survey to help improve the submission process.

· An updated version of The Comprehensive Guide to the Income Tax Return for Trusts will be available on the SARS website from 20 September 2025.

· Register, submit, and pay the assessed amounts on time as required by legislation.

  • 3 September 2025: Superior Courts Act, 2013, Companies Act, 2008, and Tax Administration Act, 2011

· Prinsloo and Others v CSARS and Another (020214/2023) [2025] ZAGPJHC (29 August 2025)

Whether SARS is able to assess the individual companies and entities collapsed under section 20(9) of the Companies Act, 2008.

· 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

  • 3 September 2025: Tax Administration Act, 2011

· CSARS v HR Focus CC (CA 118/2024) [2025] ZAECMKHC (20 August 2025)

Whether the taxpayer is the employer of the 4 500 personnel outsourced to the taxpayer’s clients.

NATIONAL TREASURY

ATAF

  • Uganda revenue authority strengthens ties with ATAF through Tax Academy exchange – 2 September 2025

SAFLII

AuthorLegal and Policy
DivisionTax
Categories
Legal and Policy
Date4 September 2025