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2021 Legal and Policy

Legal and Policy - 4 March 2021

Description

4 March 2021

SARS:

As outlined in Annexure E of the 2020 Budget Review, Government will be modernising the foreign exchange control system. The Foreign Exchange Control changes, together with the amendments in the Taxation Laws Amendment Act, 2020, will impact the TCS requests for FIA and Emigration as well as the withdrawal of retirement funds as follows:

  • The concept of “emigration” and the South African Reserve Bank’s approval process via the MP336(b) form will be terminated. Thereafter, for tax purposes, only the event of an individual “ceasing to be a resident for tax purposes” in South Africa, will be relevant.
    • All applications, where the applicant had their MP336(b) attested by an Authorised Dealer on or before 28 February 2021, will still be able to apply for a Tax Compliance Status (TCS) in respect of “Emigration”, during the period until 28 February 2022, in terms of the current procedure dealing with emigration for exchange control purposes.
    • All applications for TCSs for individuals ceasing to be a tax resident, from Monday, 1 March 2021 onwards, other than those under the previous bullet, will be processed by SARS based on a new dispensation where SARS will confirm that the taxpayer has ceased to be a resident for tax purposes. An MP336(b) will no longer be required as part of the TCS application process. The taxpayer must still apply via the SARS TCR01 “Emigration “Application
  • From 1 March 2021 onwards, taxpayers will be able to access their applicable retirement benefits if they can prove, to the fund, that they have been non-resident for tax purposes for an uninterrupted period of three years and an applicable Tax Directive is issued to the fund by SARS. Taxpayers must provide the applicable Tax Compliance Status (TCS)​ to the Authorised Dealers, as well as documentation from the fund that indicates or confirms the final amount paid to the taxpayer, before any transfers can be effected.
  • The current process of controlling or blocking an emigrant's remaining assets in a special “blocked funds account” will fall away and all transfers from these will be handled as normal fund transfers in line with any other FIA transfer.
  • A TCS in respect of FIA will be required for all transfers of listed securities from a securities register in South Africa to a securities register outside South Africa (The effective date of this will be communicated by the South African Reserve Bank).
  • Request for Proposal (RFP)19/2020: Provision of Media Bulk Buying, Media Planning and related services
  • Trade Statistics for January 2021
  • In order to safeguard taxpayers and to combat fraudulent activities, the Special Power of Attorney (SPPOA) Form, appointing any taxpayer or taxpayer representative other than a tax practitioner, to act on a taxpayer's behalf, must be accompanied by a –
    • certified copy of the taxpayer's identity document;
    • a certified copy of representative taxpayer's identity document; and
    • an affidavit from the taxpayer authorising the representative taxpayer to act on his/her behalf. The affidavit to, at a minimum, include the identity number of the representative and the tax number of the taxpayer.
  • New page created – HS 2022
    • General Note 9 – Purchase of annuities and transfer to retirement annuity fund at retirement
    • General Note 9A – Purchase of annuities and transfer to retirement annuity fund at retirement
    • General Note 12 – Retirement from employment
    • General Note 18 (Issue 2) – Providing Annuities on Retirement from Employment Decision
    • General Note 18A (Issue 2) – Providing Annuities on Retirement from Employment Decision
  • Income tax notice, scheduled for publication in the Government Gazette, under section 8(1) relating to rate per kilometre in respect of motor vehicles – effective 1 March 2021
  • Publication details for tariff amendment notices R147 and R150, as published in Government Gazettes 44194 and 44198 of 26 February 2021, are now available
  • The tariff amendment notices, scheduled for publication in the Government Gazette, relate to the amendments to –
    • Part 6 of Schedule No. 1, by the insertion of Note 4 as well as the substitution of various items under export tax item 193.00, in order to insert the African Continental Free Trade Agreement (AfCFTA) column and reduce the rate of export duty as promulgated in the Taxation Laws Amendment Act, 2020, on 20 January 2021 to free until 31 July 2021 (with effect from 1 March 2021 up to and including 31 July 2021); and
    • Part 6 of Schedule No. 1, by the substitution of the export tax rates under export tax item 193.00 as promulgated in the Taxation Laws Amendment Act, 2020, on 20 January 2021 (with effect from 1 August 2021).

Publication details will be made available later

TREASURY:

OECD:

SARB:

DivisionLegal and Policy
Date4 March 2021