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.
• Updated Guides for the enhanced process
  • The Completion Guide for IRP3(s) Forms can be accessed here.
  • The Guide to Complete the lump sum Tax Directive Application Forms can be accessed here.
  • The Guide to the Tax Directive functionality on eFiling can be accessed here.
  • The Guide to Complete Submit and Cancel a Recognition of Transfer can be accessed here.
  • The Guide to the SARS Online Query System can be accessed here.
  • The Guide to submit your Individual Income Tax Return via eFiling can be accessed here.
  • The Services offered via the SARS MobiApp can be accessed here.
  • The Guide to SARS Mobile Tax Services can be accessed here.
• Scams
  • Latest refund payment scams
    • The latest scam is an email indicating you are eligible for a refund.
    • To "complete your refund" the scam asks you to submit SARS FICA documents. The scam leads you to click a link, which is linking to a fraudulent website.
    • See an example of the latest refund scam here.
    • Make sure the email or SMS is genuine before you click on any link.
    • Protect yourself from scams and phishing:
      • Do not open or respond to emails from unknown sources.
      • Beware of emails or SMSs asking for personal, tax, banking or eFiling details.
      • SARS will never send you hyperlinks to other websites.
  • Latest outstanding amount scam
    • The latest scam is an email indicating you have an outstanding amount to be paid to SARS. The scam asks you to click a link, which goes to a fraudulent website.
    • See an example of the latest refund scam here.
• Gauteng tax workshops for September 2024
  • The Gauteng tax workshop schedule for September 2024 has been published and can be accessed here.
• Average exchange rates
  • A list of the average exchange rates of selected currencies for a year of assessment as from December 2003 has been published as Table A.
  • A list of the monthly average exchange rates to assist a person whose year of assessment is shorter or longer than 12 months has been published as Table B.
  • The next update is expected in December 2024.

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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.