ENS Tax In Brief

Below, please find issue 130 of ENS' tax in brief, a snapshot of the latest tax developments in South Africa.

advance tax rulings.

• Binding private ruling 410 | Disposal by a controlled foreign company of equity shares in a foreign company
  • This ruling determines the income tax and capital gains tax consequences on the disposal by a controlled foreign company of an investment in a foreign company.
  • Find the ruling here.

customs and excise

• Weekly list of unentered goods
  • Find the list of unentered goods here.
• Prohibited and Restricted Imports and Exports list
  • ITAC Import permit is not required for Tariff heading 4911.

SARS publications

• Tax Directive Enhancements and Tax Implications of the Two-Pot Retirement System
  • Members of pension funds, provident funds, pension preservation funds, provident preservation funds, and retirement annuity funds will be able to access a portion of their retirement savings in the member's retirement fund as a cash payment while still a member of that fund.
  • Retirement funds will not be split into three components:
    • Vested component.
    • Savings component.
    • Retirement component.
  • A member, who has already reached the normal retirement age but has not elected to retire, may transfer their retirement fund to another approved pension fund / provident fund when the employer, for example, establishes a new approved pension or provident fund without incurring any tax liability.
  • The tax directive system and application forms have been enhanced to accommodate requests for the Savings Withdrawal Benefit and for transfers of the Vested Component, Savings Component, and Retirement Component to another fund.
  • An overall view of the new Two-pot retirement system webpage with FAQs for taxpayers and the Funds can be accessed here.
  • A two-pot retirement system calculator can be accessed here. The calculator will assist pension fund members with an illustrative amount of what they can possibly expect as a payout. All relevant and accurate information must be provided to get a clear estimate of the payout. The same calculator is also available on eFiling, the MobiApp and WhatsApp.
• Updated forms for the enhanced Tax Directives process
  • The updated application for tax directives Gratuities and Two Pot Savings Withdrawal Benefit (IRP3a) Form can be accessed here.
  • The Request for Tax Deduction Directive Pension and Provident Funds (Form A&D) can be accessed here.
  • The Request for Tax Deduction Directive Pension and Provident Funds (Form B) can be accessed here.
  • The Request for Tax Deduction Directive Retirement Annuity Funds (Form C) can be accessed here.
  • The Recognition of Transfer between Approval Funds (Form ROT01) can be accessed here.
  • The Application by Non-Residents for a Directive for Relief from SA Tax for Pension and SWB (RST01 Form) can be accessed here.

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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.