South Africa: ENSafrica Tax In Brief

Below, please find issue 116 of ENS' tax in brief, a snapshot of the latest tax developments in South Africa.

SARS publications

• Tax Practitioner Connect Newsletter | Issue 49
  • This issue includes information on the solar energy tax credit, recognition of controlling bodies, registration of tax practitioners, VAT enhancements for estimated assessments and local assets at market value declared on the ITR12 return
  • Find a copy of the Newsletter here.
• Tax Directive System Enhancements Implemented
  • SARS has enhanced the Tax Directives system in line with legislative and system requirements.
  • The following changes to the Tax Directives process will affect external stakeholders:
    • Taxation of local and foreign income will now cater for South African citizens who earned income both locally and abroad in one Year of Assessment, but who do not qualify for 10(i)(o)(ii).
    • There will be free portability between funds, such as with transfers to unclaimed benefit funds:
      • Unclaimed Pension Preservation Fund
      • Unclaimed Provident Preservation Fund
    • The provisions of the Income Tax Act No. 58 of 1962 ("ITA") confirm that a deduction equal to the value of the amount transferred will be allowed as a deduction for any transfer from a pension fund and pension preservation fund (including an unclaimed-benefit pension preservation fund).
    • This means that the transfer will be tax neutral.
    • The update to the directives system will allow the "Transfer – Unclaimed Benefits" (code 48) to account for transfers between pension, preservation, and provident funds, and unclaimed-benefit funds of each type.
    • The following fund types will be added to the eFiling RT01 screen drop-down menu:
• Tax Directives Legislative Changes
  • Tax directive guides have been updated to include the following changes:
  • The new fields added on the IRP3(s) form to allow for the taxation of local and foreign income for South African citizens who have worked both locally and overseas who do not qualify for exemption under s10(i)(o)(ii).
  • The new fund types added to the ROT01 form which are Unclaimed Pension Preservation Fund and Unclaimed Provident Preservation Fund.
• Find the Completion Guide for IRP3(a) and IRP3(s) forms here.
• Find the Guide to Complete, Submit and Cancel a Recognition of Transfer here
• Media Release | Commissioner Kieswetter's term extended
  • SARS has confirmed that President Cyril Ramaphosa requested that Mr Edward Kieswetter stay beyond his current term, which was meant to expire on 30 April 2024.
  • Both parties agreed to the extension of his term as Commissioner for a period of two years.
  • The term extension provides inter alia the necessary time to continue the existing investment to strengthen the SARS leadership bench and prepare for an orderly leadership transition in the organisation over the next two years.
• Media Release | Trade Statistics for January 2024
  • In the year 2023, South Africa recorded a full year total trade balance surplus of ZAR62.2 billion.
  • SARS has released the trade statistics for January 2024, recording a preliminary trade balance deficit of ZAR9.4 billion.
  • The deficit is attributable to exports of ZAR144.3 billion and imports of ZAR153.7 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia.
  • Find the full media release here.

To view the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.