SAICA Legal Update 3 June 2021

SARS:

• Unemployment Insurance Fund (UIF) Contributions

There is an increase of monthly remuneration liable to UIF contributions from 1 June 2021. The Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the contributions to the unemployment insurance fund must be determined on remuneration not exceeding R 17 712 per month.

• This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021.

• The previous limit of R 14 872 per month was therefore only applicable to remuneration paid or payable by an employer to an employee for any month up to 31 May 2021.

All employers and payroll providers are requested to immediately implement the increased remuneration amount to ensure that the unemployment insurance contributions for June 2021 is correctly determined and paid not later than 7 July 2021. For more information, see the UIF webpage and the legal webpage where the notice was published.

• New Scam alert

A new scam is doing the rounds pretending to be from SARS. The scam is titled ‘Notices of Administrative Penalty from SARS’. Please don’t click on the document attached to the scam email and delete the scam email immediately. An example of the scam was published on our Scams & Phishing webpage.

• Review of Disability List

• Unemployment Insurance Contributions Act, 2002: ​ Notice 475, as published in Government Gazette 44641 of 28 May 2021, relating to the determination of limit on amount of remuneration for purposes of determination of contribution in terms of section 6 of the Act. All previous notices withdrawn with effect from 1 June 2021

• Income Tax Act, 1962: Income Tax Notice 474, as published in Government Gazette 44640 of 28 May 2021, relating to the determination of amount for purposes of paragraph (b)(x)(cc) of the proviso to the definition of “retirement annuity fund” in section 1 of the Act. All previous notices withdrawn with effect from 1 March 2021.

• Amendment made to tariff heading – 2902.30 – Tolune. ITAC import and the export control Regulations and therefore requires an import and an export permit. See the updated Prohibited and Restriction Imports and Exports list – 31 May 2021

• SARS released Trade Statistics for April 2021 recording a trade balance surplus of R51.24 billion. The R51.24 billion trade surplus for April 2021 is attributable to exports of R161.47 billion and imports of R110.23 billion. Exports decreased by R6.61 billion (3.9%) between March and April 2021 and imports decreased by R5.29 billion (4.6%) over the same period. Visit the Trade Statistics webpage for more information.

• Customs & Excise Act, 1964: Publication details for tariff amendment notices R457, R458, R459, R460 and R461, as published in Government Gazette 44635 of 28 May 2021, are now available.

• 9th Meeting of the Africa initiative

• Customs & Excise Act, 1964: The tariff amendments, scheduled for publication in the Government Gazette, relate to the amendments to –

• the General Notes to Schedule No. 1, to change the reference from “EU” to read as “EU / UK” in order to clarify the applicability of good imported from the EU to also be applicable to goods imported from the UK and Ireland as per the SACU-M UK EPA agreement;

• Part 1 of Schedule No. 1, to amend the rate of duty column headed “EU” to read as “EU / UK” in order to clarify the applicability of good imported from the EU to also be applicable to goods imported from the UK and Ireland as per the SACU-M UK EPA agreement;

• Part 6 of Schedule No. 1, to amend the rate of duty column headed “EU” to read as “EU / UK” in order to clarify the applicability of good imported from the EU to also be applicable to goods imported from the UK and Ireland as per the SACU-M UK EPA agreement;

• Schedule No. 10, to change the reference from “EU” to read as “EU / UK” in order to clarify the applicability of good imported from the EU to also be applicable to goods imported from the UK and Ireland as per the SACU-M UK EPA agreement; and

• Part 1 of Schedule No. 3, by the insertion of rebate item 320.01/6005.3/01.05 in order to create a rebate facility for warp knit fabrics classifiable in tariff heading 60.05, for use in the manufacture of upholstered furniture – ITAC Report No. 647.

Publication details will be made available later

TREASURY:

• Address by the Deputy Minister of Finance DR David Masondo, MP at the Young Women in Business Network Cocktail Dinner

• Statement of the National Revenue, Expenditure and Borrowing as at 30 April 2021

OECD:

• New report highlights crucial role of tax transparency and exchange of information in helping African governments stem illicit financial flows and increase domestic resource mobilisation -26 May 2021

ATAF:

• Why tax transparency plays a crucial role to stemming illicit financial flows

SAFLII:

• Commissioner: SARS v Toneleria Nacional RSA (Pty) Ltd (445/2020) [2021] ZASCA 65 (1 June 2021)

SARB:

• Exchange Control Circulars:

Exchange Control Circular No. 12/2021 Authorised Dealer in foreign exchange