ENS Tax In Brief - Issue 141

Below, please find issue 141 of ENS' Tax in brief, a snapshot of the latest tax developments in South Africa.

case law

• Supreme Court of Appeal ("SCA") | Aveng Mining Shafts and Underground v The Commissioner for the South African Revenue Service (1192/2023) [2025] ZASCA 20
  • The taxpayer sought VAT (input tax) deductions totalling R17,495,071.81 from June 2012
  • August 2016 under the Value-Added Tax Act No. 89 of 1991 ("VAT Act"). These deductions related
  • entertainment expenses, which included accommodation and food costs for employees assigned to specific fixed-term mine construction projects.
  • The issue before the SCA was whether section 17(2)(a)(i) (bb) of the VAT Act allowed the taxpayer
  • deduct the input tax in question.
  • The taxpayer argued that it should be allowed
  • deduct the input tax because the expenses were incurred in deploying employees
  • specific projects.
  • The SCA dismissed the appeal with costs, finding that the taxpayer was not eligible
  • claim the input tax on entertainment expenses.
  • Find a copy of the judgment here.

legislation and draft legislation

• The Revenue Laws Amendment Bill [B-2025] has been published
  • Find a copy of the Bill here
• The 2025 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill has been published for comment
  • Public comments are due 31 March 2025
  • Find a copy of the Bill here
• Value-Added Tax Act, 1991 | "electronic services"
  • The updated Regulations prescribing "the definition of "electronic services" in section 1(1) of the Value-Added Tax Act, 1991 has been published in Government Gazette 52293 of 14 March 2025.
    • The effective date of the new regulations is 1 April 2025.
    • Find a copy of the updated regulations here.

SARS publications

• Publications | Income Tax Act, 1962
  • The updated Average Exchange Rates have been published as follows:
    • 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.
  • Find more information here.
• SARS' Frequently Asked Questions on the Increase in the VAT Rate from 1 May 2025 have been published. This must be read with the Pocket Guide on the VAT Rate Increase from 1 May 2025.
• 2026 Employees' Tax Deduction Tables and Guides for Employers to assist employers in meeting their tax obligations have been published as follows:
  • Guides for Employers:
    • PAYE-GEN-01-G01 – Guide for Employers in respect of Tax Deduction Tables
    • PAYE-GEN-01-G02 – Guide for Employers in respect of Fringe Benefits
    • PAYE-GEN-01-G03 – Guide for Employers in respect of Allowances
    • PAYE-GEN-01-G20 – Guide for Employers in respect of Employees' Tax for 2026
• Tax Deduction Tables:
  • PAYE-GEN-01-G01-A01 – Weekly tax deduction tables
  • PAYE-GEN-01-G01-A02 – Fortnightly tax deduction tables
  • PAYE-GEN-01-G01-A03 – Monthly tax deduction tables
  • PAYE-GEN-01-G01-A04 – Yearly tax deduction tables
  • PAYE-GEN-01-G03-A01 – Rate per Kilometre Schedule
• Media release | SARS accepts the Revenue Estimate Set for the 2024/25 Fiscal Year
  • Find a copy of the media release here.
  • For more information, visit the Budget webpage.
• Monthly Tax Digest | March 2025
  • The monthly digest discusses inter alia payments, payment reference number (PRN) etc.
  • Find more information here
• Tax exemption guide for public benefit organisations (PBOs) in South Africa | Issue 7
  • The guide provides general guidance on approval by the commissioner of an organisation as a PBO, partial taxation of PBOs, and the taxes and duties that may affect PBOs.
  • Find more information here
• The updated guides for ABC Capital Gains Tax have been published as follows:
  • ABC Capital Gains Tax- for Individuals (Issue13)
  • ABC Capital Gains Tax- for Companies (Issue 11)
  • Find more information here.
• Tax Directives Software | Trade testing dates
  • To facilitate the upcoming system changes, SARS will be making enhancements to the Tax Directives process. The changes are detailed in IBIR-006 Tax Directives Interface Specification Version 6.802.
  • Trade testing will commence on 24 March 2025 and run till 7 April 2025.
  • o Find more information here
• Appointment of a corporate entity as a trustee of a trust and/or executor in a deceased estate
  • The Public Officers and Representatives policy has been updated to allow the nominated new representative still to be authorised by the Master of the High Court to carry out tax administrative duties on behalf of the Corporate Entity either as trustee or executor, pending the formal amendment of the letter of authorisation or letter of exclusivity.
  • Find more information here.

exchange control

• Exchange Control Circular No. 2/2025 | Statement on exchange control was published
  • Reference is made to Annexure E of the 2025 Budget Speech announcing further exchange control reforms, with is attached as Annexure A to the Circular.
  • In amplification of the aforegoing, two draft Circulars are attached as Annexure B.1 and B.2 for public comment by 30 April 2025.
  • The draft Circulars are titled:
    • Draft Exchange Control Circular No. 3/2025 | Travel allowance.
    • Draft Exchange Control Circular No. 4/2025 | Hedging – Agricultural commodities.
  • Additionally, the Financial Surveillance Department is working on a regulatory framework for informal money value transfer services and cross-border crypto asset transactions, which will be published for public consultation once finalised.
  • The IMF reviewed foreign exposure limits for institutional investors, recommending the 45% limit be maintained due to the stability of South Africa's financial markets.
  • Find a copy of the Circular here.

customs and excise

• Customs and Excise Act, 1964 | Tariff Amendments 2025
  • Tariff Amendments Notice R.5978 has been published in Government Gazette 52263 of 14 March 2025.
  • The notice relates to the imposition of provisional payment in relation to anti-dumping duties against the increased imports of other screws fully threaded with hexagon heads and other bolts with hexagon heads excluding bolt ends, screw studs and screw studding, classifiable under tariff subheadings 7318.15.39 and 7318.15.43 respectively, originating in or imported from the People's Republic of China (ITAC Report No. 745).
  • Find a copy of Notice R.5978 here.
• Rule Amendments Notice R.5974 on Anti-forestalling measures in respect of anticipated increases in excise duties (DAR260) (with retrospective effect from 19 February 2025) has been published in Government Gazette 52255 of 11 March 2025.
• SARS has announced that, effective from 1 April 2025, all electronic customs declarations must include comprehensive invoice data. Failure to comply will result in documentary inspection or audit.
  • o Find the detailed letter to trade here
• Guide on the Declaration of Sealable Goods | Customs and Excise Act, 1964.
  • The guide provides information on the legislative requirements under the Customs and Excise Act relating to the declaration of sealable goods by the master and crew of a ship arriving in the Republic
  • Find more information here.
• Customs | Intention of the SARS Commissioner to formally withdraw all concessions
  • SARS reviewed certain requirements as outlined in the Customs and Excise Act, under the auspices of certain concessions that were previously granted and is now formally withdrawing all concessions on which certain clients are relying.
  • Find more information here
• A copy of the Taxation Proposals as tabled by the Minister of Finance in his Budget Review 2025 is now available 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.