Draft Documents for Public Comment - South African Revenue Service

All comments received on drafts are considered in full, but due to time constraints, no individual correspondence will be entered into.

The draft documents are categorised according to their due date for comment. Comments may be emailed to the address indicated in the last column.

Latest draft uploaded for comment Look under 31 March 2021
Due date for comments	Legislation Category	Description	Send comments to
24 March 2021	Customs & Excise Act, 1964	Draft rule and schedule amendments in respect of the diesel refund scheme Rules under sections 75A, 59A, 119A and 120, and the following forms: Form DA 185 – Application form: Registration / Licensing of Customs and Excise clients Form DA 185.4A18 – Registration client type 4A18 – Seller of eligible purchases of distillate fuel to diesel refund users Form DA 185.4A19 – Registration client type 4A19 – Diesel refund user under the diesel refund scheme Form DSL201 – Diesel refund return Note 6 to Part 3 of Schedule No. 6 (logbook templates referenced in Note 6 will be published for comment at a future date) Please record your comments on the Diesel Refund Comment Sheet. Explanatory Note: Second drafts of diesel refund rules, forms and notes to the Customs and Excise Act, 1964, are hereby published for public comment. The updated draft amendments incorporate relevant comments and technical inputs received from various stakeholders in response to the first drafts that were published for comment in 2020. These proposed reforms to the diesel refund administration may, where necessary, be informed by industry-specific consultations during the year. Date published: 9 February 2021	C&E_Legislativecomments@sars.gov.za
31 March 2021	National Legislation	Draft notices and bill Media statement – 2021 Draft Rates Bill, Draft Notices and invitation to make submissions on sunset dates of certain tax incentives Draft bill – 2021 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill – 24 February 2021 Draft notice – Amounts for purposes of definition of retirement annuity funds – 24 February 2021 Draft notice – UIF remuneration limit – (updated 26 February 2021) Explanatory Note: National Treasury and SARS hereby invite comments in writing on the 2021 Draft Rates Bill, the draft Notice on Regulations on amounts for purposes of definition of retirement funds, the draft Notice on Regulations on Unemployment Insurance Fund remuneration limit. The 2021 draft Financial Sector Levies Bill is also available for comment. See the media statement for more information. Date published: 24 February 2021	acollins@sars.gov.za and 2020AnnexCProp@treasury.gov.za
31 March 2021 New!	Customs & Excise Act, 1964	Draft Excise forms DA 260 tobacco products (VM) DA 260 tobacco products (SOS) Explanatory Note: Excise Duties are payable by manufacturers of tobacco products on the DA 260 account. As a result of Budget 2021 proposals in respect of heated tobacco products, the current DA 260 excise accounts must be amended to reflect certain additional fields. Date published: 17 March 2021	C&E_Legislativecomments@sars.gov.za
23 April 2021	Income Tax Act, 1962	Draft interpretation note Draft IN 59 (Issue 2) – Tax treatment of the receipt or accrual of government grants Explanatory Note: This Note has been updated for significant legislative amendments and deals with – the tax consequences of the receipt or accrual of government grants; the exemptions from normal tax applicable to government grants; and anti-double-dipping rules applicable to expenditure funded by such grants. The primary sections dealt with are section 1(1) – definition of “gross income”, section 12P and the Eleventh Schedule.” Date published: 26 February 2021	policycomments@sars.gov.za
30 April 2021	Customs & Excise Act, 1964	Draft schedules amendments Explanatory Memorandum Draft Notes to Part 1 of Schedule No.1 to implement HS 2022 Draft amendment of Part 1 of Schedule No.1 to implement HS 2022 Explanatory Note: The changes in HS 2022 reflect the amendments to the nomenclature appended to the International Convention on the Harmonised Commodity Description and Coding System (HS Convention), which were accepted as a result of the Customs Co-operation Council’s (now the World Customs Organisation) recommendations of 28 June 2019. These amendments will enter into force on 1 January 2022. Complementary amendments to the HS Nomenclature 2022 have been accepted as a result of the Council Recommendation of 25 June 2020. As a signatory to the HS Convention, South Africa implements the amendments in terms of section 48(1)(c) of the Customs and Excise Act, 1964. This is the seventh major revision of the HS since it had been approved by the Council in 1983 and implemented in 1988 and includes, on an international level, 351 sets of amendments. The HS 2022 amendments and correlation table (Schedule No. 1) up to a 6-digit level as well as the complementary amendments can be viewed on the WCO website at http://www.wcoomd.org To give effect to this proposal the draft amendments are contained in the draft amendments as follows: Draft amended Notes to Part 1 of Schedule No.1 to implement HS 2022 Part 1 of Schedule No. 1 is amended to give effect to the HS 2022 amendments Date published: 26 February 2021	technicaltariff@sars.gov.za
30 April 2021	Income Tax Act, 1962	Draft interpretation note Draft interpretation note –Deductions in respect of improvements to land or buildings not owned by a taxpayer Explanatory Note: This Note provides guidance on the interpretation and application of – section 12N, which facilitates allowances under specified sections of the Act for improvements made to land or buildings not owned by a taxpayer but over which the taxpayer holds a right of use or occupation. The improvement must be effected under a PPP, a lease agreement with the state or certain other tax-exempt statutory bodies and the state or that body owns the land or building, or under the Independent Power Producer Procurement Programme; and section 12NA, which deals with deductions for improvements effected under a PPP by a person to land or to a building over which the state holds the right of use or occupation. Date published: 1 March 2021	policycomments@sars.gov.za

Sorry, you’ve missed the due date for comment. These drafts will be removed in due course.
Due date was for:	Legislation Category	Type of Draft & Description
18 February 2021	Customs & Excise Act, 1964	Draft Excise Form Draft DA 180 – Carbon tax account (Front page) Completion notes Explanatory Note Section 6(3) of the Carbon Tax Act, 2019, provides a pass-through mechanism whereby petroleum refineries may recover some of their carbon tax cost. This pass-through mechanism applies as a deduction against the carbon tax liability of petroleum refineries of a partial carbon tax cost offset in respect of their total volume of petrol produced during a tax period. Amendments are proposed to the DA 180 Front page and Completion notes of the carbon tax account in the Rules to the Customs and Excise Act, 1964, to give effect to this pass-through mechanism under the carbon tax administration. Date published: 28 January 2021
12 February 2021	Customs & Excise Act, 1964	Draft rules amendment Draft amendment to rules under sections 18 and 120 – Obtaining permission for carrying out of activities for the purpose of preservation or maintenance of goods in transit through the Republic Explanatory Note Draft amendment of rules under sectiona 18 and 120, to provide for the process of obtaining permission for carrying out of activities for the purpose of preservation or maintenance of goods in transit through the Republic. Date published: 25 January 2021
5 February 2021	Income Tax Act, 1962	Draft interpretation note Draft IN 91 (Issue 2) – Concession or compromise of a debt Explanatory Note This Draft Note provides guidance on the interpretation and application of section 19 and paragraph 12A which deal with the concession or compromise of debt in respect of years of assessment commencing on or after 1 January 2018. The information in this Note is based on the income tax and tax administration legislation (as amended) as at the time of publishing and includes the following: The Taxation Laws Amendment Act 34 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42951). The Tax Administration Laws Amendment Act 33 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42952). The Rates and Monetary Amounts and Amendment of Revenue Laws Act 32 of 2019 which was promulgated on 15 January 2020 (as per Government Gazette 42950). Date published: 8 December 2020
Due date extended to 5 February 2021 22 January 2021	Customs & Excise Act, 1964	Draft rule amendment Draft amendment to rule under section 120 – Insertion of rule relating to sealing of goods Explanatory Note Rule inserted provides for the compulsory sealing of certain categories of goods for purposes of monitoring their movement in the Republic. Date published: 4 December 2020
31 January 2021	Customs & Excise Act, 1964	Draft Schedule amendment Amendments to Part 1 of Schedule No. 1 Explanatory Note The draft amendments provide for separate 8-digit tariff subheadings for banknotes, postage stamps and revenue stamps to enable more accurate statistical data on the movement of the said goods. Date published: 11 December 2020
15 January 2021	Customs & Excise Act, 1964	Draft Schedule amendment (Value-Added Tax Act) Draft amendments to paragraph 8 of Schedule 1 to the Value-Added Tax Act, 1991 – Special shops for diplomats Date published: 17 December 2020
Due date extended to 15 January 2021 4 December 2020	Customs & Excise Act, 1964	Draft rules amendments Draft amendments to rules under sections 21, 119A and 120 – Special shops for diplomats Draft amendments to Schedule No. 4 – Goods for Head of States DA 185.4B4 – Licensing Client Type 4B4 – Special storage warehouse Explanatory Note The draft amendments relate to the regulation of special shops for diplomats. Date published: 20 November 2020
4 December 2020	Customs & Excise Act, 1964	Draft rules amendments Draft amendments to rules under sections 49 and 120 – Insertion of rules in respect of the Economic Partnership Agreement between the Southern African Customs Union Member States and Mozambique, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part DA 185 – Application form – Registration / Licensing of Customs and Excise Clients DA 185.4A2 – Registration Client Type 4A2 – Exporter (Located or not located in the Republic) DA 185.4A7 – Registration Client Type 4A7 – Producer Explanatory Note For the purpose of giving effect to the Agreement rules were drafted to align with the provisions of the Agreement regarding the definition of the concept of originating products, arrangements for administrative cooperation etc. The rules provide working instructions and requirements for importers, exporters, agents and customs administrations. Date published: 20 November 2020 Rule replaced and forms added on 27 November 2020
20 November 2020	Customs & Excise Act, 1964	Draft Rule and Schedule amendments Draft amendments to rules under sections 24 and 120 –Exemption of ship stores Draft amendments to Part 1 of Schedule No. 4 – Rebate item 413.00 Explanatory Note Draft amendments relating to the exemption of ship stores from the payment of duty. Date published: 29 October 2020
Due date extended to 30 October 2020 9 October 2020	Customs & Excise Act, 1964	Draft Schedule Amendments Explanatory memorandum; Amendment to Chapter 44 – To create an 8-digit tariff subheading for particle board of wood coated, covered or laminated with melamine; Amendment to Chapter 72 – To create an 8-digit tariff subheading for wires coated or plated with copper with diameter of 1.30 mm or more but not exceeding 4.88 mm, consisting of a carbon content greater than 0.4% but not exceeding 0.85%; and Amendment to Chapter 94 – For the creation of separate 8-digit tariff subheadings under tariff headings 94.01, 94.03 and 94.04. Explanatory Note Various technical amendments to Part 1 of Schedule 1 to create separate 8-digit tariff subheadings classifiable in Chapters 44, 72 and 94. Date published: 12 October 2020
9 November 2020	Customs & Excise Act, 1964	Draft rules amendments Draft rules amendments under sections 49 and 120 – AfCFTA rules Explanatory Note Draft rules for purposes of the Agreement Establishing the African Continental Free Trade Area (AfCFTA) and its Protocols, Annexes and Appendices. Date published: 22 September 2020
8 October 2020	Customs & Excise Act, 1964	Draft tariffs amendments Draft tariffs amendments – Part 1 of Schedule No. 1 Explanatory Memorandum Explanatory Note An explanatory memorandum has been added containing explanations of the proposed amendments. Date published: 10 September 2020
1 October 2020	Customs & Excise Act, 1964	Draft Schedule amendment Draft amendment to Part 1 of Schedule No. 1 Explanatory Memorandum Explanatory Note Draft amendment to Part 1 of Schedule No. 1 to implement the 2021 Economic Partnership Agreement phase-downs with effect from 1 January 2021. Date published: 1 September 2020
24 September 2020	Customs & Excise Act, 1964	Draft rule amendment Draft rule amendment under section 120 – Rule 120A.03 and items to the Schedule to the Rules Explanatory Note The draft amendments extends the current hours of attendance and hours of business at Kopfontein, Oshoek and Lebombo commercial ports to 24 hours daily. Date published: 10 September 2020
18 September 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Taxation of the receipt of deposits Explanatory Note This Note provides guidance on the words “received by” in the definition of gross income and the treatment of the receipt of a deposit in the ordinary course of business. The Note does not deal with amounts deposited by clients with banks and similar deposit-taking financial institutions. Date published: 23 July 2020
9 September 2020	Customs & Excise Act, 1964	Draft rules amendments Draft amendments under sections 59, 60 and 120 – Rules 59A.01A and 60.10(1) – Calendar day grace period (Previously published for public comment on 7 August 2020) Explanatory Note The draft amendment to rules 59A and 60 – clarifies the grace period allowed for compliance with new registration or licensing requirements when updating information, and substitutes the period of “60 days” with “60 calendar days”; and corrects references in the rules to “20 April 2020” to correspond with the implementation date of 24 April 2020, as indicated in Notice R.473 of Government Gazette 43245. Please note: Public comment is only invited in respect of the proposed amendment referred to in the second bullet point. The proposed amendment in respect of the first bullet point was already published for public comment on 7 August 2020. Date published: 2 September 2020
31 August 2020	National Legislation	2020 Draft Rates Bill, Draft Tax Bills, Draft Regulations and Venture Capital Company (VCC) Survey Media Statement: Publication of the 2020 Draft Tax Bills 2020 Draft Taxation Laws Amendment Bill (TLAB) – 31 July 2020 2020 Draft Explanatory Memorandum on the 2020 Draft Taxation Laws Amendment Bill – 31 July 2020 2020 Draft Tax Administration Laws Amendment Bill (TALAB) – 31 July 2020 2020 Draft Memorandum on the objects of the 2020 Draft Tax Administration Laws Amendment Bill – 31 July 2020 2020 Draft Regulations Prescribing Electronic Service – 31 July 2020 2020 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill – 31 July 2020 (Added on 3 August 2020) 2020 VCC Survey – 31 July 2020 Explanatory Note National Treasury and SARS hereby publish the 2020 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, the 2020 drat Taxation Laws Amendment Bill (TLAB), 2020 draft Tax Administration Laws Amendment Bill (TALAB) and the draft Regulations Prescribing Electronic Services, to give effect to the the 2020 Budget and the extension of some COVID-19 relief measures. Furthermore, Venture Capital Companies (VCCs) are requested to complete the VCC survey. Date published: 31 July 2020
21 August 2020	Customs & Excise Act, 1964	Draft rules amendments Draft amendments under sections 59, 60 and 120 – Rules 59A.01A and 60.10(1) – Calendar day grace period Explanatory Note The draft amendments clarify the grace period allowed for compliance with new registration or licensing requirements when updating information, and substitutes the period of “60 days” with “60 calendar days”. Date published: 7 August 2020
14 August 2020	Customs & Excise Act, 1964	Draft rule amendment Draft amendment under sections 39 and 120 – Rule 39.01 – Clearing instructions Explanatory Note Draft amendment in relation to clearing instructions, including the specific information that must be reflected by the principal. Date published: 30 July 2020
11 August 2020	Customs & Excise Act, 1964	Draft tariff amendment Draft amendment to Part 4 of Schedule No. 6 Explanatory Note The insertion of a new Note to give clarity on the persons allowed to claim a refund for tyre levy purposes and the required documents required when claiming such refund. Date published: 14 July 2020
5 August 2020	Customs & Excise Act, 1964	Draft tariff amendments Draft amendment to Part 1 of Schedule No. 1 (Notes to Chapter 98) Draft amendment to Part 1 of Schedule No. 3 (Rebate item 317.01) Draft amendment to Part 1 of Schedule No. 3 (Rebate item 317.04) Draft amendment to Part 2 of Schedule No. 4 (Rebate item 460.17) Draft amendment to Part 3 of Schedule No. 5 (Rebate item 537) Explanatory Note The amendments are done in order to support the vision of the South African Automotive Masterplan of creating “a globally competitive and transformed industry that contribute to the sustainable development of South Africa’s productive economy creating prosperity for industry stakeholder and broader society”. The amendments should be read with the International Trade Administration Commission’s draft published on the following link: www.itac.org.za/pages/services/tariff-investigations/apdp-post-2020-documents Date of published: 8 July 2020
20 July 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Vesting of income in a resident beneficiary by a non-resident trust: Interaction between section 25B(1) and section 7(8) Explanatory Note This Note provides clarity on the interpretation and application of the words “subject to the provisions of section 7” in section 25B(1) and, more specifically, whether section 7(8) or section 25B(1) applies when income received by or accrued to a non-resident trust by reason of or in consequence of a donation, settlement or other disposition by a resident, is vested in a resident beneficiary by the trustees of the non-resident trust. Date published: 22 June 2020
30 June 2020	Value-Added Tax Act, 1991	Draft Interpretation Note Draft Interpretation Note – Value-added tax consequences of points-based loyalty programmes Explanatory Note This draft Note clarifies the VAT implications resulting from the participation in loyalty programmes based on the current provisions of the VAT Act. This Note does not attempt to list and analyse all the loyalty programmes available. Loyalty programmes differ from each other, evolve and change because of continuous changes in market conditions, competition etc. For this reason, the general VAT principles applicable to loyalty programmes as contained in this Note must be analysed and subsequently applied to each transaction in a loyalty programme in accordance with that specific loyalty programme’s characteristics or nature. Date published: 2 April 2020
30 June 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Taxation of amounts received by or accrued to missionaries Explanatory Note This draft Note provides clarity on the tax treatment of amounts received by or accrued to missionaries who are performing religious or related activities in South Africa. Date published: 26 March 2020
24 June 2020	Customs & Excise Act, 1964	Draft rule amendment Draft rule amendment under sections 59A and 120 – Rule 59A.03 – Registration code 70707070 Explanatory Note The draft amendment provides that persons who are excluded from formal registration requirements may make use of the registration code 70707070. The use of this code is subject to requirements set out in the rule. Date published: 3 June 2020
15 June 2020	Customs & Excise Act, 1964	Draft rule amendment Draft rule amendment under sections 39 and 120 – Rule 39.01 – telephonic clearing instructions Explanatory Note The draft amendment provides clarity in respect of telephonic clearing instructions by the importer, as referred to in rule 39.01(c). Date published: 25 May 2020
29 May 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Withholding tax on royalties Explanatory Note The draft interpretation note on Withholding Tax on Royalties provides guidance on the interpretation and application of sections 49A to 49H relating to withholding tax on royalties. A draft note was previously issued on Withholding Tax on Royalties, however, due to significant changes and alignment it is reissued for a second round of comment. Date published: 18 March 2020
29 May 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Withholding tax on interest Explanatory Note The draft interpretation note on Withholding Tax on Interest provides guidance on the interpretation and application of sections 50A to 50H relating to withholding tax on interest. Date published: 18 March 2020
29 May 2020	National Legislation	Proposal to introduce export taxes on scrap metal 2020 Budget Review Chapter 4 (Revenue trends and tax proposals) Explanatory Note As recommended by the International Trade Administration Commission (ITAC), the proposed export taxes to apply to scrap metal are as follows: Ferrous metals (including stainless steel) – R1 000.00 per tonne Aluminium – R3 000.00 per tonne Red Metals – R8 426.00 per tonne Other (waste and scrap metals) –R1 000.00 per tonne For more information see the Media Advisory: Accreditation Process Publication of the proposal on export taxes on scrap metal for public comment. Date published: 20 May 2020
31 March 2020 Due date extended to 15 May 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Doubtful debts Notes outlining the application process Request for information (RFI) A – section 11(j)(i) Request for information (RFI) B – section 11(j)(ii) Excel-based Loss Allowance Models [Note that there are two excel forms, relating to subparagraphs (i) and (ii) respectively] Explanatory Note This draft Note provides guidance on on calculating the section 11(j) doubtful debt allowance. Taxpayers should pay attention to the accompanying document outlining the application process, the requests for information (RFIs) and the excel-based Loss Allowance Models Date published: 18 February 2020
31 March 2020 Due date extended to 15 May 2020	Income Tax Act, 1962	Draft Binding General Ruling Draft Binding General Ruling – Unbundling of unlisted company: Impact of non-qualifying shareholder Explanatory Note The draft BGR provides clarity on what constitutes an unbundling transaction under section 46(1) of the Income Tax Act 58 of 1962 when an unbundling company having non-qualifying shareholders unbundles shares in an unlisted unbundled company. A non-qualifying shareholder is a shareholder of the unbundling company that does not form part of the same group of companies as the unbundling company. Date published: 13 February 2020
15 May 2020	National Legislation	Revised COVID-19 Draft Tax Bills and Draft rule amendments Media statement – Publication of the revised COVID-19 Draft Tax Bills for public comment Revised Draft Bill – Disaster Management Tax Relief Bill, 2020 Revised Draft Bill – Disaster Management Tax Relief Administration Bill, 2020 Draft Explanatory Memorandum on the Revised Draft Disaster Management Tax Relief Bill Draft rule amendments under Customs and Excise Act 1964 – COVID-19 Relief Measures Explanatory Note National Treasury and the South African Revenue Service (SARS) publish, for public comment, the revised 2020 Draft Disaster Management Tax Relief Bill and 2020 Draft Disaster Management Tax Relief Administration Bill. These Bills give effect to the media statement issued by National Treasury on 24 April 2020 regarding further tax measures to combat the COVID-19 pandemic, following the address by President Cyril Ramaphosa on 21 April 2020. The revised 2020 Draft Disaster Management Tax Relief Bill and the 2020 Draft Disaster Management Tax Relief Administration Bill provide the necessary legislative amendments required to implement the further tax measures aimed at combating the COVID-19 pandemic and also take into account public comments received on the initial batch of COVID-19 draft tax bills published on 1 April 2020. Date published: 1 May 2020
5 May 2020	Customs & Excise Act, 1964	Draft rule amendments Draft amendments to rule under section 38 – SACU UCR Lesotho Explanatory Note The UCR is a unique reference number assigned to a consignment of goods for the purpose of tracking the goods throughout the supply chain from origin to destination. SARS is in the process of implementing the Southern African Customs Union (SACU) UCR which aims to facilitate the exchange of Customs information between SACU Member States. The Customs Administration of Lesotho is now being added to the list of countries participating in the SACU UCR implementation. Date published: 21 April 2020
30 April 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Associations: Funding requirement Explanatory Note The draft interpretation note provides guidance on the interpretation and application of the “funding” requirement in section 30B(2)(b)(ix) for an entity to be approved by the Commissioner, and to retain such approval for its receipts and accruals to qualify for exemption from normal tax under section 10(1)(d)(iii) or (iv). The “funding” requirement is only one of a number of requirements, for purposes of section 30B, that must be included in the founding document. The other requirements are not addressed in this Note. Date published: 24 March 2020
30 April 2020	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note – Public benefit organisations: Provision of residential care for retired persons Explanatory Note The draft interpretation note discusses the requirements of the public benefit activity (PBA) contemplated in paragraph 3(c) in Part I of the Ninth Schedule to the Income Tax Act 58 of 1962 (the Act). PBA 3(c) provides for residential care to be provided to retired persons. An organisation carrying on that PBA as its sole or principal object may apply for approval as a public benefit organisation under section 30(3) of the Act, and if approved by the Commissioner, obtains preferential tax treatment under section 10(1)(cN), if all of the prescribed requirements are met. Date published: 21 February 2020
28 April 2020	National Legislation	Draft explanatory notes on further COVID-19 tax measures, and draft notices relating to expanding access to living annuities Draft explanatory notes – Further COVID-19 tax measures Draft notices for urgent public comment – Expanding access to living annuities Explanatory Note Following queries received, National Treasury and SARS publish, for urgent comment, explanatory notes on further COVID-19 tax measures, and notices relating to expanding access to living annuities. Because of time constraints to have these notices signed into law with immediate effect, the comment period is open for a very limited time. Date published: 25 April 2020
15 April 2020	National Legislation	COVID-19 Draft Tax Bills Media Statement Draft Bill – Draft Disaster Management Tax Relief Bill, 2020 Draft Bill – Draft Disaster Management Tax Relief Administration Bill, 2020 Draft Explanatory Memorandum – Draft Explanatory Memorandum on the Disaster Management Tax Relief Bill, 2020 Explanatory Note Following the media statement issued by the Minister of Finance on 29 March 2020 on Tax Measures to Combat the COVID-19 pandemic, the National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the 2020 Draft Disaster Management Tax Relief Bill and the 2020 Draft Disaster Management Tax Relief Administration Bill. These draft Bills provide the necessary legislative amendments required to implement the COVID-19 tax measures. The measures contained in these draft Bills will take effect on 1 April 2020. Date published: 1 April 2020
30 March 2020	Customs & Excise Act, 1964	Draft Schedule amendments Draft amendment to Part 1 of Schedule No. 4 – By the insertion of rebate item 406.04/00.00/01.00 Draft amendment to Paragraph 8 of Schedule No. 1 to the VAT Act – Substitution of rebate 406.00 Please record your comments on the Comment sheet Explanatory Note The rebate item is inserted to provide for agreements that the Republic of South Africa may enter into. This item will allow institutions or organisations to import goods under rebate that will be used for official business by those organisation or institutions in line with the terms of that agreement. Date published: 2 March 2020
30 March 2020	National Legislation	Draft Bill Draft Bill – Draft 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill Explanatory Note National Treasury published the Draft 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill as supporting information to the 2020 Budget proposals. It is expected that the actual Bill will be introduced later in the year. Date published: 26 February 2020
17 March 2020	Customs & Excise Act, 1964	Draft rule amendments Draft amendment to rules under sections 19A, 32, 36 and 120 – Rules relating to excise Please record your comments on the Comment sheet Explanatory Note Section 19A of the Customs and Excise Act, 1964 (the Act) provides special provision in respect of customs and excise warehouses in which excisable or fuel levy goods are manufactured or stored. The amendment to rules 19A.01 and 19A3.04 relates to the deletion and insertion of updated item numbers as per the HS tariff. Section 32 of the Act provides for ascertaining the strength of spirits. The rules are being amended to provide the instrument, device or equipment to be used for the determination of alcoholic strength by volume of any spirits. Section 36 of the Act provides for special provisions regarding beer. The insertion of rule 36.01(e) state that the provisions of rule 32.01 apply mutatis mutandis for the determination of alcoholic strength by volume for beer. Date published: 3 March 2020
16 March 2020	Customs & Excise Act, 1964	Draft rule amendment Draft rule and schedule amendments in terms of the diesel refund scheme Draft amendment to rules under section 75 – Rule 75A – Rules in respect of the diesel refund scheme Form DA 185 – Application form: Registration / Licensing of Customs and Excise clients Form DA 185.4A18 – Registration client type 4A18 – Diesel refund user (Part 3 of Schedule No. 6) Form DSL201 – Diesel declaration Note 6 to Part 3 of Schedule No. 6 (updated on 4 February 2020) Please record your comments on the Comment sheet Explanatory Note First drafts of diesel refund rules, forms and notes to the Customs and Excise Act, 1964, are hereby published for public comment. The draft amendments are the result of consultations with affected industries, including the “Review of the Diesel Fuel Tax Refund System” discussion paper of 2017, industry-specific workshops conducted in 2018 and further technical inputs received from stakeholders during 2019. The draft legislation presents a provisional outline for the review of the diesel refund administration to facilitate further industry engagements during the course of the year. Date published: 31 January 2020
13 March 2020	Customs & Excise Act, 1964	Draft rule amendment Draft amendment to rules under sections 24 and 120 – Rule 24.01 and 24.04 relating to ships’ or aircraft stores consumed in the Republic Please record your comments on the Comment sheet Explanatory Note Section 24 of the Customs and Excise Act, 1964, (the Act) provides for the supply of stores to foreign-going ships on pleasure cruises. Amendments to rules 24.01 and 24.04 in relation to the supply of duty free ship stores to pleasure cruise ships operating within the territorial waters of the Republic, are proposed: Insertion in rule 24.01 of reference to the definition of “foreign-going ship” in rule 38A.01 of the Act to clarify that only “foreign–going ships” should benefit from the issuance of duty free stores regime. Currently, rule 24.04 emphasizes the foreign registry of ships however; the aforementioned requirement has no relevance or impact on duty relief. Deletion of the foreign registry of ships requirement in rule 24.04 is proposed. Rule 24.04 in its current form provides for exemptions from payment of duties on quantities of stores of specific tariff headings subject to the discretion of the Controller. The proposed amendment will remove the Controller’s discretion in respect of quantities of duty free stores. Date published: 28 February 2020
6 March 2020	Customs & Excise Act, 1964	Draft rule amendment Draft amendment to rules under sections 38 and 120(m) – Rule 38.03 – For the export of goods Form DA 306A – Export of goods in terms of section 38(3)(a) read with rule 38.03(b) of the Customs and Excise Act No. 91 of 1964 Please record your comments on the Comment sheet Explanatory Note The rules for section 38 of the Customs and Excise Act, 1964 prescribe the forms to be used for the entry of goods imported and exported. These rules do not currently prescribe a “simplified” form in respect of the export of human remains, goods which in the opinion of the Commissioner are of no commercial value and goods of a value for duty purposes not exceeding R500, and on which no duty is payable. A “simplified” form, namely, the DA 306 is prescribed in the case of the importation of such goods (rule 38.03). The proposed amendment to rule 38.03 therefore – provides for a list of goods in respect of which a simplified form may be used on export; and prescribes the “simplified” form DA 306A to be used for the entry of such goods for export. Date published: 21 February 2020
28 February 2020	Income Tax Act, 1962	Draft guide Draft guide to building allowances (Issue 2) Explanatory Note The guide provides general guidance on building allowances available to owners and lessees of buildings. The Guide has been updated to take into account legislative amendments, clarification on certain aspects and the fact that some of the sections are now the subject of separate Interpretation Notes. Date published: 14 January 2020
28 February 2020	Customs & Excise Act, 1964	Draft rule amendment Draft amendment to rules under section 75 – Part 1D of Schedule No. 6 by the deletion of rebate item 621.16/104.21.03/02.01 Explanatory Note Rebate item 621.00 provides for a rebate of duty on “spirits entered or deemed to have been entered for home consumption and payment of duty as contemplated in section 19A and its rules which have been exported by the licensee of a manufacturing warehouse (VMS) from stocks owned and stored by such licensee on premises outside such warehouse, subject to compliance with Note 8 to this section”. Rebate item 621.16//104.21.03/02.01 in particular provides for denatured spirits exported from the VMS and as denaturing is entirely outside the activities permitted in a VMS it is suggested that this particular item be deleted. Date published: 31 January 2020
7 February 2020	Customs & Excise Act, 1964	Draft notice and related forms Draft Notice – Insertion of the environmental levy account for carbon tax in the Schedule to the Rules DA 180 – Environmental levy account for carbon tax DA 180.01A.1 – Fuel combustion (Stationary) DA 180.01A.2 – Fuel combustion (Non-stationary) DA 180.01B.1 – Fugitive (Oil and natural gas) DA 180.01B.2 – Fugitive (Coal Mining and Handling) DA 180.01C – Industrial process DA 180.02 – Carbon tax allowances Completion notes to DA 180 carbon tax account Explanatory Note The Carbon Tax environmental levy account (DA 180), which is prescribed under rule 54FD.04, is published for another round of public comments. Date published: 17 January 2020
17 January 2020	Carbon Tax Act, 2019	Draft regulations Two draft regulations were published for comment: Draft Regulations – Trade Exposure Allowance Draft Regulations – GHG Emissions Intensity Benchmarks Also see: Summary – Draft Trade Exposure and GHG Emissions Intensity Benchmark Regulations Media statement – Gazetting of the Carbon Offsets Regulations in terms of the Carbon Tax Act and related draft regulations for public comment Explanatory Note The National Treasury is seeking public comment into the Draft Regulations for Trade Exposure Allowance and the Draft Regulations for the Greenhouse Gas (GHG) Emissions Intensity Benchmarks. “The National Treasury has published for public comment two further sets of regulations, namely Draft Regulations for the Trade Exposure Allowance for purposes of section 10 and Draft Regulations for the Greenhouse Gas (GHG) Emissions Intensity Benchmarks for purposes of section 11 in terms of section 19(b) and (a) of the Act, respectively,” it said on Monday. The Draft Regulations for the Trade Exposure Allowance gives effect to the sector based allowance and provides a list of sectors and subsectors and their respective trade exposure allowances. The regulations also outline an alternative approach to calculate the trade exposure allowance for companies. In addition, the Trade Exposure Allowance, aims to assist companies that potentially face competitiveness pressures whilst the performance allowance seeks to encourage firms to reduce the carbon intensity of their production processes relative to their peers and promote the competitiveness of local products. This follows on an extensive stakeholder consultation process on the design of the carbon tax and tax free-allowances since the publication of the Carbon Tax Policy Paper in 2013 and the 2015 version of the Carbon Tax bill. Earlier this year, President Cyril Ramaphosa signed into law the Carbon Tax Act in May 2019. The Act came into effect from 1 June 2019. The Carbon Offsets Regulations – which were developed jointly by the National Treasury, the Department of Minerals Resources and Energy and the Department of Environment, Forestry and Fisheries – were gazetted on Friday. The regulations outline the eligibility criteria for offset projects and sets out the procedure for claiming the offset allowance. Companies are allowed to use carbon offsets of either 5 or 10% of their total GHG emissions to reduce their tax liability. On Monday, Treasury said it will ensure that the final regulations are gazetted by the first quarter of 2020. This is to align the regulations with the greenhouse emissions reporting period of the Department of Environment, Forestry and Fisheries. “The carbon tax is an integral part of government’s package of policy measures to mitigate climate change as outlined in the National Climate Change Response Policy, National Development Plan and its Nationally Determined Contribution commitments under the 2015 Paris Agreement.” These said Treasury, provide for the introduction of the carbon tax in a phased manner at a relatively low rate initially. This will allow businesses time to make the necessary structural adjustments to their production processes and practices and to ensure a just transition to a low carbon, climate resilient economy. “To ensure a cost effective transition, the design of the tax provides for the recycling of revenues through the electricity generation levy credit and energy efficiency savings tax incentive, and significant tax free-allowances of up to 95% of the total greenhouse gas emissions to firms, consisting of a basic tax free allowance of 60 % for direct, scope 1 emissions and allowances for sectors that are trade exposed up to a maximum of 10% and a performance allowance up to a maximum of 5%.” Date published: 4 December 2019
30 November 2019	Income Tax Act, 1962	Draft Binding General Ruling Draft BGR – Determination of the threshold for applying the higher rate of donation tax Explanatory Note This BGR provides clarity on the rate of donations tax chargeable for the value of any property disposed of under a donation, and the determination of the R30 million threshold to be applied to such value. Date published: 17 September 2019
15 November 2019	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note 18 (Issue 4) – Rebates and deduction for foreign taxes on income Explanatory Note This Note has been updated with amendments in the 2015, 2016, 2017 and 2018 Amendment Acts. Attention is drawn to the following main amendments to section 6quat on which readers may wish to comment: Section 6quat(1B)(a) – see 5.5.1. Section 6quat(1C) and (1D) – see 6. Section 6quat(1C) was amended at the same time section 6quin was deleted. Section 6quat(4) – see 7.1. In addition, owing to the deletion of section 6quin, the content relating to that section was deleted from the Note. A detailed discussion of section 6quin is contained in Issue 3 of this Note. Readers will also note that the flow, structure and some of the wording used were amended throughout the document. The purpose of these changes was to improve standardisation and readability. The discussion on section 64N was deleted, since commentary in this regard is now contained in the Comprehensive Guide to Dividends Tax. Date published: 12 September 2019
4 November 2019	Customs & Excise Act, 1964	Draft Rule Amendment Notice Amendment to rules under section 110 – Tobacco product counters Explanatory Note: New rules are proposed under section 110 of the Customs and Excise Act, 1964, that oblige the licensee of a customs and excise manufacturing warehouse for the manufacture of tobacco products to determine the quantities of all tobacco products manufactured in the warehouse by means of a functional product counter on each tobacco manufacturing machine. The draft rules explain the physical requirements of the product counter system of which further details will be communicated by the Commissioner to the licensee in writing at least 30 days before the installation date. The licensee would need to further adhere to strict reporting requirements, but may request approval from the Commissioner for an alternative methodology if the prescribed product counter system cannot be used. Date published: 2 October 2019
1 November 2019	Customs & Excise Act, 1964	Draft Rule Amendment Notice Insertion of draft rules in terms of section 58A – Anti-forestalling rules Explanatory Notes Draft rules in terms of section 58A(5) of the Customs and Excise Act, 1964 are hereby published for public comment for purposes of the intended commencement of anti-forestalling measures.
11 October 2019	Customs & Excise Act, 1964	Draft Tariff Amendment Notices Explanatory note Draft amendment to Part 1 of Schedule No. 1 – in order to insert the provision of carbon emissions tax Draft amendment to Part 3F of Schedule No. 1 – to provide for the environmental levy on carbon emissions Draft amendment to Part 6 of Schedule No. 6 – to provide for rebates and refunds on carbon tax
27 September 2019	Customs & Excise Act, 1964	Draft Rule Amendment Notice Draft rule 107A – requirements in respect of tobacco leaf dealers Comment sheet for draft rules DA 185 DA 185.4A17 Explanatory Note The insertion of draft rule 107A aims to ensure control of the supply chain in the tobacco industry. The rule provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Commissioner and keep records for purposes of inspection by the Commissioner.
23 August 2019	National Legislation	Draft Bills Media Statement – Publication of the 2019 Draft Income Tax Amendment Bill for public comment Draft Bill – Income Tax Act Amendment Bill, 2019 Explanatory Memorandum to the Draft Income Tax Amendment Bill, 2019 Explanatory Note The National Treasury and the South African Revenue Service (SARS) published, for public comment, the 2019 Draft Income Tax Amendment Bill, to give effect to Budget announcements on environmental tax incentives. The 2019 Draft Income Tax Amendment Bill contains environmental tax incentive announcements made in Chapter 4 the 2019 Budget Review that deal with the repeal of the exemption for certified emissions reductions as well as the extension of the of the energy efficiency savings incentives. The changes contained in the 2019 Draft Income Tax Amendment Bill provide the necessary legislative amendments required to implement the carbon tax, which came into effect on 1 June 2019. This bill will, together with the 2019 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Draft Rates Bill), 2019 Draft Taxation Laws Amendment Bill (2019 Draft TLAB) and the 2019 Draft Tax Administration Laws Amendment Bill (2019 Draft TALAB), be tabled in Parliament after revising the bills to take account of public comments received, as well as any recommendations made following hearings on the draft bills in Parliament.
28 June 2019	Customs & Excise Act, 1964	Draft Rule Amendment Notice Draft rule amendment – Insertion of rules 107A – requirements in respect of tobacco leaf threshers DA 185 – Application form – Registration / licensing of customs and excise clients DA 185.4A17– Application form – Client Type 4A17 – Registered leaf threshing factory Explanatory Note The insertion of draft rule 107A aims to ensure control of the supply chain in the tobacco industry. The rule provides requirements in respect of tobacco leaf threshers. Tobacco leaf threshers are required to register their factories with the Commissioner and keep records for purposes of inspection by the Commissioner.
24 June 2019	Tax Administration Act, 2011	Draft Common Reporting Standard Regulations Draft CRS Regulations Explanatory Note: Amended draft Regulations under section 257 of the Tax Administration Act, which provide for the implementation of the OECD Common Reporting Standard.
14 June 2019	Customs & Excise Act, 1964	Draft Rule Amendment Notice Draft rule amendment – Rules under section 8, relating to the reporting of conveyances and goods (“RCG”) for trains Explanatory Note Draft rules under section 8 of the Customs and Excise Act No. 91 of 1964, relating to the reporting of conveyances and goods (“RCG”) for trains, and intended to amend the current rules under section 8 of that Act are hereby published for public comment. The content of the proposed rules under section 8 is, within the context of the 1964 Act, closely related to Chapter 3 of the Customs Control Act No. 31 of 2014. The proposed rules are intended to bring the RCG requirements under the 1964 Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.
20 May 2019 31 May 2019 Due date extended to 14 June 2019	Customs & Excise Act, 1964	Draft Tariff Amendment Notice Explanatory memorandum Draft amendment to Part 1 of Schedule No. 1 – in order to insert the provision of carbon emissions tax Draft amendment to Part 3F of Schedule No. 1 – to provide for the environmental levy on carbon emissions Draft amendment to Part 6 of Schedule No. 6 – to provide for rebates and refunds on carbon tax
29 March 2019	Schedules to the Excise Duty Act, 1964, and Customs Control Act, 2014	Draft Schedules As a consequence of the rewrite of the Customs and Excise Act, 1964, which will be replaced with the new Excise Duty Act, 1964 and the Customs Control Act, 2014, kindly find below documents for consideration and comments: Correlation Table This document is comprehensive and contains corresponding references and provisions for inclusions from the Schedule to the Customs and Excise Act, 91 of 1964 and the new draft Customs tariff The General Notes to the Excise Tariff Schedule No. 1 – Excise and Ad Valorem Duty Schedule No. 2 – Environmental Levy Schedule No. 3 – Fuel and Road Accident Levy Schedule No. 4 – Health Promotion Levy Schedule No. 5 – Ordinary Levy Schedule No. 6 – Rebates and Refunds of Excise Duties, Fuel Levy, Road Accident Fund Levy, Environmental Levy and Health Promotion Levy Schedule No. 7 – Rebate on Import Duties Schedule No. 8 – Drawback and Refunds of Excise Duties on Imported Goods
9 March 2019 Due date extended to 29 March 2019	Schedules to the Customs Control Act, 2014 and Customs Duty Act, 2014	Draft Schedules As a consequence of the rewrite of the Customs and Excise Act, 1964, which will be replaced with the new Customs Duty Act, 2014 and the Customs Control Act, 2014, kindly find below documents for consideration and comments: Correlation table This document is comprehensive and contains a birds eye view of the tariff structure as contained in the 1964 Act, any changes to the wording and structure and where in the new Customs Tariff it can be found. The correlation is from the 1964 Act to the new Customs Tariff and the other way round. The General Notes to the Customs Tariff The General Notes are circulated without the rest of Schedule No. 1 as it will make the documents bulky and difficult to email. Schedule No. 1 contains a few changes that are elaborated on in the correlation table (see lines 60 to 73) but in essence it contains the current tariff code structure of the existing Schedule No. 1 Part 1 of the 1964 Act. Schedule No. 2 to the Custom Tariff Schedule No. 2 remained unchanged with the exception of the Notes which were previously repeated in each Part of Schedule No. 2. The changes are contained in the correlation table. Schedule No. 3 to the Customs Tariff Schedule No. 3 significantly changed and contains both the provisions of Schedule No. 3 and Schedule No. 4 to the 1964 Act. The Schedule is also aligned with the procedures as contained in the CDA and CCA. All the changes are elaborated upon in the correlation table. Schedule No. 4 to the Customs Tariff Schedule No. 4 contains the refund and drawback provisions previously contained in Schedule No. 5 to the 1964 Act. The Schedule now also makes provision for some refunds contained in Chapters 25 and 26 of the CCA that did not form part of the 1964 version of Schedule No. 5. All the changes and movement of items are elaborated upon in the correlation table. Schedule No. 5 to the Customs Tariff Schedule No. 5 contains the provisions for ordinary levy that previously resorted in Part 8 of Schedule No. 1 of the 1964 Act.
8 March 2019	Tax Administration Act, 2011	Draft Notice Draft revised notice – Listing reportable and excluded arrangements in terms of sections 35(2) and 36(4) Explanatory Note The draft revised notice lists reportable and excluded arrangements in terms of sections 35(2) and 36(4)
6 March 2019 Due date extended to 8 March 2019	Customs & Excise Act, 1964	Draft Amendment Notice Draft Rule Amendments – Rules under section 110 for tobacco product counter Comment Sheet Explanatory Note New rules are proposed under section 110 of the Customs and Excise Act, 1964, that oblige the licensee of a customs and excise manufacturing warehouse for the manufacture of tobacco products to determine the quantities of all tobacco products manufactured in the warehouse by means of a functional product counter on each tobacco manufacturing machine. The draft rules explain the physical requirements of the product counter system of which further details will be communicated by the Commissioner to the licensee in writing at least 30 days before the installation date. The licensee would need to further adhere to strict reporting requirements, but may request approval from the Commissioner for an alternative methodology if the prescribed product counter system cannot be used.
8 October 2018	Customs & Excise Act, 1964	Draft Amendment Notice Draft rules under section 8 for trains – reporting of conveyances and goods (“RCG”) Comment sheet Explanatory Note Draft rules under section 8 of the Customs and Excise Act, 1964 (Act No. 91 of 1964 ), relating to the reporting of conveyances and goods (“RCG”) for trains, and intended to replace the current rules under section 8 of that Act are hereby published for public comment. The content of the proposed rules under section 8 is, within the context of the 1964 Act, closely related to Chapter 3 of the Customs Control Act, 2014 (Act No. 31 of 2014 ). The proposed rules are intended to bring the RCG requirements under the 1964 Act closer to what will be required in terms of the Customs Control Act when that Act comes into effect.
18 September 2018	Customs & Excise Act, 1964	Draft Amendment Notices Draft amendment to section C of Part 1 of Schedule No. 6, by the insertion of Note 7 as well as rebate items 620.25/104.15, 620.25/104.15.21/01.01 and 620.25/104.15.23/02.01 Draft rule inserting form DA 133 – Return in respect of spirits/fortified wine/unfortified wine received and used under rebate of duty Form DA 133 Explanatory Note The proposed amendments to Schedule No. 6 to the Act are contained in the draft amendments as follows: Section C of Part 1 of Schedule No. 6 is amended to provide for the rebate provision on unfortified wine used in the manufacture of other foodstuffs. Form DA 133 is being inserted in the Schedule to the Rules. This form is used by the rebate user for recording the manufacturing, other operation or process.
26 June 2018	Tax Administration Act, 2011	Draft Rules Dispute resolution rules in terms of section 103 of the Tax Administration Act, 2011 Explanatory Note Rules governing the procedures to lodge an objection and appeal against an assessment or decision under Chapter 9 of the Act, procedures for alternative dispute resolution, and the conduct and hearing of appeals before a Tax Board or Tax Court.
18 May 2018	Mineral and Petroleum Resources Royalty Act, 2008	Draft Interpretation Note Draft IN on the meaning of “bulk” in Schedule 2 Explanatory Note The Mineral and Petroleum Resources Royalty Act 28 of 2008 provides for the payment of a royalty on the transfer of a mineral resource extracted from within the Republic. Schedule 2 to this Act contains a list of values which comprise the “condition specified” for particular unrefined mineral resources. However, some mineral resources in Schedule 2 such as aggregates and sand have their value specified as “bulk”. This interpretation note examines the meaning of “bulk”.
30 April 2018	Income Tax Act, 1962	Draft Interpretation Note Draft IN on the prohibition of deductions for certain intellectual property Explanatory Note Section 23I prohibits a deduction of any expenditure incurred for the right or permission to use intellectual property and other expenditure which is directly or indirectly related to such expenditure. This Note provides guidance on the interpretation and application of section 23I.
For sight only	Customs Duty Act, 2014; and Customs Control Act, 2014	Rule Amendments Customs Duty Rules “frozen” draft (including Part on Deferment) Customs Control Rules “frozen” draft (including consequential amendments to Chapter 30) Explanatory Note Refer to the cover note
22 March 2018	National Legislation	National Legislation 2018 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill Draft Amendments to Regulations prescribing electronic services Consolidated Regulations after Draft Amendments to Regulations prescribing electronic services Draft Explanatory Memorandum-Regulations prescribing electronic services Explanatory Note The above documents as announced during the Minister of Finance’s 2018 Budget Speech are published for public comments. NOTE: See updated Draft Documents published in October 2018 on the Treasury Website.
21 February 2018	Customs & Excise Act, 1964	Draft Amendment Notice Draft rules under sections 39B and 41 incomplete and provisional entries Explanatory Note Refer to the cover note.
31 October 2017	Employment Tax Incentive Act, 2013	Draft guide Draft guide to the employment tax incentive (Issue 2) Explanatory Note The Guide to the Employment Tax Incentive (ETI) has been updated mainly to bring into consideration, the legislative amendments enacted by the Taxation Laws Amendment Act 15 of 2016. The ETI is a temporary tax incentive that may be claimed by eligible employers for qualifying employees employed on or after 1 October 2013. It commenced on 1 January 2014 and will end on 28 February 2019.
31 July 2017	Customs Duty Act, 2014	Customs Duty Rules Draft deferment rules in terms of the Customs Duty Act, 2014 Explanatory Note Part 2 of Chapter 3 of the Customs Duty Rules, dealing with Deferment is hereby published for public comment. Note that the draft Part has not been renumbered as renumbering will be done once the Part is inserted into the text of Chapter 3 of the Customs Duty Rules.
26 July 2017	Customs & Excise Act, 1964	Draft Rule Amendments Rule 19A3.01 – Storage of fermented ethyl alcohol in a licenced special storage warehouse Insertion of rebate items 621.23,621.25, 621.27, 621.29,621.33, 621.35 and 621.37 to provide for the movement of alcohol derived from the process of extraction, respectively Insertion of rebate items 620.18 and 620.20 to provide for the production of fermented ethyl alcohol by-product Substitution of rebate item 619.07 and 620.21, to include the manufacture of non-alcoholic beverages by a process of extraction Explanatory Note New technologies in the alcoholic beverages sector allow for the extraction of alcohol from beverages of a fermented origin. The current rules provide for the application of such fermented ethyl alcohol in primary or secondary spirits manufacturing, the denaturing thereof for rebated use or the export thereof. This proposed rule amendment will in addition provide for the storage of such fermented ethyl alcohol in a licenced special storage warehouse for the un-denatured supply thereof to registered rebate users. The draft rule amendment must be read together with the proposed rebate amendments The rebate item numbers 619.07, 620.19 and 620.21 has been amended to include wine, other fermented beverages and beer that have undergone a process of extracting the alcohol, to manufacture non-alcoholic beverages. Rebate items 621.23, 621.25, 621.33, 621.35 have been created to provide for the fermented ethyl alcohol by-product derived from the extraction process to be moved to primary (VMP) or secondary (VMS) warehouse to undergo any further processing. In addition rebate 621.27, 621.29, 621.37, 621.39 is also created to provide for the fermented ethyl alcohol by-product derived from the extraction process to be moved to a special storage warehouse for the undenatured supply thereof to registered rebate users or export.
For sight only	Customs Duty Act, 2014	Customs Duty Rules (Third Draft) Clean copy Copy showing changes Explanatory Note The third draft of the Customs Duty Rules made under the Customs Duty Act, 2014 (Act No. 30 of 2014), is hereby published for sight. As previously explained to stakeholders, this draft has been “frozen” for purposes of SARS systems development. Please note that the draft is not published for public comment at this stage. Refer to explanatory note
Not for comment	Customs Control Act, 2014	Customs Control Rules (Third Draft) Explanatory Note Clean copy Copy showing changes Explanatory Note The third draft of the Customs Control Rules made under the Customs Control Act 31 of 2014, is hereby published for sight. As previously explained to stakeholders, this draft has been “frozen” for purposes of SARS systems development. Please note that the draft is not published for public comment.
21 April 2017	Income Tax Act, 1962	Draft Interpretation Note Draft Interpretation Note on the withholding tax on royalties Explanatory Note The withholding tax on royalties applies to royalties paid by a resident to a non-resident for the use of intellectual property belonging to the non-resident. Like other withholding taxes, withholding taxes on royalties can potentially be reduced or eliminated by a tax treaty between the states of the contracting parties. The withholding tax on royalties was previously contained in section 35, which provided for a withholding rate of 12%. Owing to the need for uniformity between the different types of withholding taxes, the withholding regimes were amended. Section 35 was accordingly repealed and replaced with sections 49A to 49H with effect from 1 July 2013. The withholding rate was increased to 15% with effect from 1 January 2015.

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