Practice Notes - South African Revenue Service

The Practice Notes in this Archive have been either withdrawn or replaced and are only intended for reference and/or research purposes.

Practice Notes that are still effective, can be found under Interpretation & Rulings > Practice Notes.

Notices of Withdrawal of Practice Notes

Description	Effective date
Notice relating to Value-Added Tax Practice Notes Numbers 1, 3, 4, 10, 11, 12	1 April 2016
Notice relating to Practice Notes Number 17	1 March 2012
Notice relating to Practice Notes Numbers 8 and 16	1 January 2012
Notice relating to Practice Notes Numbers 20, 24-25, 28-29, 33-34, 40-41; VAT Practice Notes 01/96 and 15/95; SARS Practice Note 3	1 February 2010
Notice relating to Practice Notes Numbers 1-3, 6, 7, 14, 21, 38, 44	16 July 2004

Retirement Fund Practice Notes

Practice Note Reference Number	History	Description	Notes
2011
RF 1/2011	Issued on 01/03/2011 —————— Implemented with effect from 30/09/2010 ——————- Withdrawn with effect from 05/11/2012	Conditions for pension preservation funds	RF 1/2011 was withdrawn by RF 1/2012 with effect from 5 November 2012
2004
RF 1/2004	Issued on 24/03/2004 ——————- Withdrawn with effect from 07/06/2016	Payment of annuities in arrear	RF 1/2004 was wihdrawn with effect from 7 June 2016 due to legislative amendments to paragraph 4(1) of the Second Schedule to the Income Tax Act, 1962
1998
RF 1/1998	Issued on 30/11/1998 ——————- Withdrawn with effect from 30/09/2010	Funds for the preservation of the retirement interests of employees Addendum A Addendum B Addendum C (not available) Addendum D (not available) Addendum E (not available)	RF 1/1998, as well as its Addenda, was withdrawn by RF 1/2011 with effect from 30 September 2010
1996
RF 1/1996	Issued in June 1996 —————— Replaced with effect from 01/03/2008	Calculation of flexible annuity benefits Addendum A Addendum B	RF 1/1996, and its Addenda, was replaced by the insertion of the definition of “living annuity” in section 1 of the Income Tax Act, 1962, with effect from 1 March 2008

Income Tax Practice Notes

These Practice Notes were issued under the Income Tax Act, 1962

Practice Note Reference Number	History	Description	Notes
2001
8 of 2001	Issued on 26/03/2001 —————- Replaced with effect from 22/02/2012	Exemption from income tax in terms of s.10(1)(e)	Replaced by Interpretation Note 64 (Issue 1) with effect from 22 February 2012
1999
4 of 1999	Issued on 08/03/1999 —————– Replaced with effect from 04/07/2018	Treatment of gains and losses on foreign exchange transactions	Replaced by Interpretation Note 101 with efffect from 4 July 2018
6 of 1999	Issued on 30/07/1999 —————– Replaced with effect from 12/02/2013	Game Farming	Replaced by Interpretation Note 69 with effect from 12 February 2013
1996
1 of 1996	Issued on 04/04/1996 ——————– Withdrawn on 18/08/2015	Provision for ship repairs in terms of section 14(1)(c) in the Income Tax Act, 1962	Section 14(1)(c) had been repealed by Taxation Laws Amendment Act No. 31 of 2013. This provision has therefore become obsolete
2 of 1996	Issued on 14/05/1996 ——————– Withdrawn on 05/08/2019, with effect from years of assessment commencing on or after 1 April 2012	Income Tax: Determination of taxable income where financial assistance has been granted by a non-resident of the Republic to a resident of the Republic	Section 31 was substituted by the Taxation Laws Amendment Act, 2011 with effect from years of assessment commencing on or after 1 April 2012. As this Practice Note and its Addendum of 17 May 2002 gave guidance on section 31(3) before it was substituted they are not applicable from the date of substitution and are accordingly withdrawn for years of assessment commencing on or after 1 April 2012.
1995
43 of 1995	Issued on 20/12/1995 —————— Withdrawn on 18/08/2015	Treatment of certain types of policy loans	Section 29 had been repealed by Revenue Laws Amendment Act No. 20 of 2006, therefore this provision has become obsolete
1994
32 of 1994	Issued on 07/10/1994 —————– Replaced with effect from 22/09/2014	Valuation of Stock: Nurserymen	Replaced by Interpretation Note 79 with effect from 22 September 2014
23 of 1994	Issued on 17/06/1994 —————— Withdrawn on 18/08/2015	Taxation of trusts and trust beneficiaries – section 25B	Section 25B had been substituted by section 27(1) of Revenue Laws Amendment Act 32 of 2004 with effect from the years of assessment ending on or after 24 January 2005. Therefore, the provision has become obsolete.
1993
16 of 1993	Issued on 12/03/1993 ——————- Withdrawn with effect from the commencement of years of assessement ending on or after 01/01/2012	Deduction in terms of s.12C in respect of certain foundations or supporting structures	This Note is obsolete in view of the amendment to section 12C by the Taxation Laws Amendment Act, 2011 and is withdrawn with effect from the commencement of years of assessment ending on or after 1 January 2012 Refer to the Notice of Withdrawal of Practice Notes dated 1 January 2012
1988
8 of 1988	Issued on 30/12/1988 —————— Withdrawn with effect from the commencement of years of assessment ending on or after 01/01/2010	Deduction in respect of finance charges under section 11(bB)	Section 11(bB) was deleted by section 14(1)(a) of the Taxation Laws Amendment Act No. 17 of 2009. This provision is repealed because it is obsolete in view of the enactment of s.24J. The withdrawal of this Note is the same as the effective date of the deletion of s.11(bB), namely from the commencement of years of assessment ending on or after 1 January 2010. Refer to the Notice of Withdrawal of Practice Notes dated 1 January 2012

Value-Added Tax (VAT) Practice Notes

These Practice Notes were issued under the Value-Added Tax Act, 1991.

Practice Note Reference Number	History	Description	Notes
2001
1 of 2001	Issued on 31/07/2001 —————- Withdrawn with effect from 01/04/2016	Insurance indemnity payments Section 8(8)	Specific supplies in the short-term insurance industry, including deemed supplies in respect of insurance indemnity payments are dealt with in the VAT 421 – Guide for Short-Term Insurance and Binding General Ruling No. 14 – VAT Treatment of Specific Supplies in the Short-Term Insurance Industry.
1998
1 of 1998 Originally published in General Notice 427 on 11 March 1998 (GG 18738)	Issued on 11/03/1998 —————- Withdrawn with effect from 13/11/1998	Documentary proof required on consignment or delivery of movable goods to a recipient at an address in an export country Section 11(1)(a) read with paragraph (a) of the definition of “exported” in section 1	Withdrawn by Practice Note 2 of 1998 dated 13 November 1998
2 of 1998 Originally published in General Notice 2762 on 13 November 1998 (GG 19471)	Issued on 13/11/1998 —————- Withdrawn with effect from 01/04/2005	Documentary proof required on consignment or delivery of movable goods to a recipient at an address in an export country Section 11(1)(a) read with paragraph (a) of the definition of “exported” in section 1	Withdrawn by Interpretation Note 30 (Issue 1) with effect from 1 April 2005
1996
1 of 1996	Issued on 12/04/1996 —————- Withdrawn with effect from 01/02/2010	Withdrawal of rulings in respect of value-added tax	Withdrawn by Notice of Withdrawal of Practice Notes dated 1 February 2010
1995
14 of 1995	Issued on 20/01/1995 —————- Witdrawn with effect from 31/03/2010	Going concerns – Section 11(1)(e)	Withdrawn by Interpretation Note 57 dated 31 March 2010
15 of 1995	Issued on07/04/1996 —————– Withdrawn with effect from 01/02/2010	Treatment of supplies of dried maize and maize products	Withdrawn by Notice of Withdrawal of Practice Notes dated 1 February 2010 Note Schedules 1 and 2 to the VAT Act were amended by Revenue Laws Amendment Act, 2007 to deal with the matter
1994
13 of 1994	Issued on 06/09/1994 —————– Withdrawn with effect from 09/04/2015	Professional hunters and taxidermists	Withdrawn by Interpretation Note 81 (Issue 2) dated 9 April 2015
1993
12 of 1993	Issued on 24/11/1993 —————- Withdrawn with effect from 01/04/2016	Zero-rating of the supply of brown bread Section 11(1)(j)	The term “brown bread” in Item 1 of paragraph 1, under Part B of Schedule 2 to the VAT Act is defined with reference to Regulation 1 of the Regulations in terms of Government Notice R577, published in Government Gazette No. 13074 of 15 March 1991. Therefore, the details in the Practice Notice are not necessary. Note however that these regulations have been repealed and replaced by the Regulations contained in Government Notice No. 186 of 22 February 2008, published in Government Gazette No. 30782.
1992
11 of 1992	Issued on 10/02/1992 —————- Withdrawn with effect from 01/04/2016	Zero-rating of the supply of certain transport-related services Sections 11(2)(g)(iv) and 11(2)(h)	(1) The legislation was amended. (2) The normal requirements of sections 11(2)(a), (c) and (e) must be met for the zero-rating to apply.
1991
1 of 1991	Issued on 25/09/1991 —————— Withdrawn with effect from 01/02/2010	Valuation of Livestock – Section 78	Withdrawn by Notice of Withdrawal of Practice Notes dated 1 February 2010
2 of 1991	Issued on 25/09/1991 ——————– Withdrawn with effect from 09/04/2015	Tax Invoices, Debit Notes and Credit Notes	Withdrawn by Interpretation Note 83 (Issue 2) dated 9 April 2015
3 of 1991	Issued on 25/09/1991 —————- Withdrawn with effect from 01/04/2016	Prices advertised or quoted to include tax, including transitional rules for the change over from sales tax to VAT Section 65	(1) The transitional rules for the change over from sales tax to VAT are obsolete. (2) Should there be a need to approve alternative methods of displaying prices, approval may be granted to a vendor or class of vendors on request under proviso (iii) to section 65.
4 of 1991	Issued on 25/09/1991 —————- Withdrawn with effect from 01/04/2016	Time of supply: Determination of time of supply in respect of certain fixed property transactions	(1) References to section 9(3)(d)(i) are obsolete. (2) Explanations relating to the conclusion of agreements before the VAT Act commenced, as well as retention money received after 30 September 1991 relating to services performed before that date, are outdated. (3) Normal time of supply rules apply to agent’s commission. The time of supply rules relating to fixed property are covered in the VAT 409 – Guide for Fixed Property and Construction.
5 of 1991	Issued on 25/09/1991 —————– Withdrawn with effect from 14/12/2009	Tax periods – Section 27	Withdrawn by Interpretation Note 52 (Issue 1) dated 14 December 2009
8 and 9 of 1991 Originally published in General Notice 397 on 27 April 1992 (GG 13949)	Issued on 01/05/1992 —————— Withdrawn with effect from 27/04/1992	VAT Export Incentive Scheme – Procedures for refund of tax to certain persons resident or conducting business in BLNS countries or to supply goods to them at the rate of zero per cent	Replaced by Notice 2761 published in GG 19471 dated 13 November 1998 and then included in the Regulations
10 of 1991	Issued on 01/10/1991 —————- Withdrawn with effect from 01/04/2016	Zero-rating of the supply of international transportation services of goods and related activities Sections 11(2)(a), 11(2)(c) and 11(2)(e)	(1) The legislation was amended. (2) The normal requirements of sections 11(2)(a), (c) and (e) must be met for the zero-rating to apply.

Notices of Withdrawal of Practice Notes

Retirement Fund Practice Notes

Income Tax Practice Notes

Value-Added Tax (VAT) Practice Notes

Navigation

Contact Us

Search our Site

Table of Contents