Legal and Policy - 17 June 2021

17 June 2021

SARS:

• The Guide to the Tax Compliance Status on eFiling has been updated with supporting documents required for when a family unit is emigrating. For more information, see the updated Guide to the Tax Compliance Status on eFiling.
• You may now verify your Tax Compliance Status (TCS) online. This new feature is in addition to requesting your TCS online. For more information, see our Send us a Query webpage.
• Filing Season for Individuals will start 1 July 2021. To help you prepare for 2021 Filing Season, see our leaflet on ‘Preparing for the 2021 Filing Season’. If you are unsure whether you need to submit a return, complete our quick and easy ‘Do you need to submit a return?’
• Income Tax Act, 1962: ​Comprehensive Guide to Dividends Tax (Issue 4)
• Customs & Excise Act, 1964: Amendments to rules, as published in Government Gazette44700 of 11 June 2021, relating to –
  • interim administrative arrangement for SACUM-UK EPA tariff rate quotas to be carried out by SARS on a first-come first-served basis (DAR215) (Notice R503)
  • South African Customs Union (SACU) Unique Consignment Reference (UCR) Number (DAR214) (Notice R502)
• Customs officers of the South African Revenue Service (SARS) this week scored several victories in the fight against the trade in illegal cigarettes with a search and seizure operation in three cities and a bust at the Kopfontein border post. For the detail, see the media release: Illegal cigarettes valued at millions of rands seized and destroyed.
• The Minister of Trade, Industry and Competition issued a policy directive in terms of section 5 of the International Trade Administration Act, 2002, requesting the International Trade and Administration Commission to assist in the implementation of the Automotive Production and Development Programme post 2020 (APDP Phase II) in order to replace the current APDP. For the detail, see the media release: Implementation of the policy directive for the Administration of the Automotive Production Development Programme post 2020
• Customs & Excise Act, 1964: Amendment to rules under sections 21, 60, 119A and 120 – Special Storage Warehouse (DAR216) (Notice R525 in Government Gazette 44705)
• Value-Added Tax Act, 1991: Amendment to VAT Notice No. R.369 of Government Gazette No. 44473 in order to change the effective date to 1 August 2021 (VAT Notice R526 of Government Gazette 44705)
• Customs & Excise Act, 1964: Tariff amendment notices R523 and R524, as published in Government Gazette 44705 of 14 June 2021, relate to the amendments to –
  • Notice No. R368 of Government Gazette No. 44473, in order to change the effective date to 1 August 2021, the substitution of Notes 5 and 7 and header of rebate item 406,05 to the Schedules of the Customs and Excise Act, 1964 (Notice R523); and
  • Notices Numbers R360, 361, 362, 363, 364, 365, 366, and 367 of Government Gazette No. 44473, in order to change the effective date to 1 August 2021 to the Schedules of the Customs and Excise Act, 1964 (Notice R524).
• Customs & Excise Act, 1964: The tariff amendments, scheduled for publication in the Government Gazette, relate to the amendments to –

• Notes 5 and 8 to Chapter 98 in Part 1 of Schedule No. 1, in order to include reference of new rebate item 307.04 to implement APDP Phase II – ITAC Minute M10/2020;
• Part 1 of Schedule No. 3, by the insertion of new Notes and item 317.04 to provide for APDP Phase II – ITAC Minute 10/2020;
• Part 2 of Schedule No. 4, in order to include new rebate item 317.04 and to remove the reference to “production rebate credit certificate (PRCC)” and insert production rebate certificate (PRC) as well as the insertion of various new rebate items, to give effect to APDP Phase II – ITAC Minute M10/2020; and
• Part 3 of Schedule No. 5, in order to amend Notes to item 537.00 to include new rebate item 317.04 and make provision for production rebate certificate (PRC) as well as insertion of new refund items 537.04, to give effect to APDP Phase II – ITAC Minute M10/2021

Publication details will be made available on 25 June 2021

TREASURY:

• Media Statement: Minister Mboweni Holds an Introductory Meeting with New Board of Directors of the Independent Regulatory Board for Auditors
• Media Advisory: Zero Based Budgeting Framework Media Workshop
• Frequently asked questions about crypto assets
• Position paper on crypto assets
• Crypto assets to be brought into South African regulatory purview

OECD:

• Webinar: The Role of Taxation in Achieving Gender Equality- 15 June 2021

10 June 2021

SARS:

• The PAYE Business Requirement Specification (BRS) for Employer Reconciliation was updated.

See the updated PAYE BRS Employer Reconciliation version 20.0.1

• Income Tax Act, 1962: Draft Binding General Ruling – Purchase of different types of annuities at retirement. Due date for public comment: 31 July 2021
• Income Tax Act, 1962: Average Exchange Rates Tables
  • 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
• Updated Release Notes for version 7.1.2 for e@syFile™ Employer were published. It includes an adjustment to validation calculation for source code 3751 in conjunction with 4587. See the release notes here.

• Customs & Excise Act, 1964: CSARS v Toneleria Nacional RSA (Pty) Ltd (445/2020) [2021] ZASCA 65 (1 June 2021)

Customs Duty; classification; wooden items for use in winemaking to impart flavour to the wine; whether coopers’ products

• What are the requirements for claiming home office expenses? The Income Tax Act states that a tax deduction for home office expenses is only allowed:

• If the room is regularly and exclusively used for the purposes of the taxpayer’s trade e.g. employment and is specifically equipped for that purpose. The home office must be set up solely for the purpose of working.
• If the employee’s remuneration is only salary, the duties are mainly performed in this part of the home. It therefore means you perform more than 50% of your duties in your home office.
• Where more than 50% of your remuneration consist of commission or variable payments based on your work performance and more than 50% of those duties are performed outside of an office provided by your employer.

For more information, see our Home Office Expenses webpage.

• The determination of whether an individual ceases to be a tax resident in South Africa is based on the manner in which such individual has been a tax resident in South Africa. If the taxpayer has been an ordinarily tax resident, it is a factual enquiry on whether or not that person’s subjective intention to cease to be ordinarily resident in South Africa and no longer make South Africa his or her real home, is supported by various objective factors. If a person has ceased to be an ordinarily tax resident, it will be from the day such person ceased his or her residence. For more information and the factors that will be taken into account to determine whether a taxpayer has ceased to be a tax resident of South Africa, see our Cease to be a Resident webpage.
• Updated Customs weekly list of unentered goods

TREASURY:

• Update on Afribusiness NPC v The Minister of Finance
• Draft National Green Finance Taxonomy
• Address by Deputy Minister of Finance, Dr David Masondo, to the ex-Municipal Council of Lekwa
• Media Advisory : Invitation to submit public comments on candidates being considered for recommendation for appointment as Deputy Commissioners of the Financial Sector Conduct Authority
• CV of Katherine Gibson
• CV of Farzana Badat
• Provisional Financing Figures as at 31 May 2021

OECD:

• Webinar: The Role of Taxation in Achieving Gender Equality - 15 June 2021
• Statement from OECD Secretary-General Mathias Cormann on the outcome of the G7 Finance Ministers’ Meeting- 5 June 2021
• Blog post: How tax reform can promote growth and gender equality in the post-COVID era- 4 June 2021
• Public comments received on proposed changes to Commentaries in the OECD Model Tax Convention on Article 9 and on related articles- 3 June 2021

ATAF:

• Juta and the African Tax Administration Forum partner to publish Africa’s first-ever multidisciplinary tax journal
• ATAF’s revised Pillar One Proposals to the Inclusive Framework adds to G7 deal to stop global corporate tax avoidance
• FACTI Meeting focuses on effects of IFFs on developing countries

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