Category Archives: SARS

South African Revenue Services

2017 Tax Season Opens

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Trusts enhancements

SARS introduced enhancements to the Income Tax Return for a Trust (ITR12T) from Monday, 15 May 2017,

Tax Season 2017 opens 1 July 2017

Tax Season is around the corner, it shouldn’t drive you round the bend. Let’s do this,

eFiling downtime

Due to ongoing maintenance, eFiling will not be available on 19 May 2017 from 18h00 to 24h00. Apologies for the inconvenience.

Disputes enhancements

From 15 May 2017 SARS introduced changes to the current dispute management process,

FATCA and CRS filing season

The filing season for FATCA and CRS is closed now,

Special Voluntary Disclosure

Legislation was passed on 19 Jan 2017. A reminder that non-compliant taxpayers with unauthorised offshore assets can apply before 31 Aug 2017,

Employer Annual Reconciliation

The Employer Annual Reconciliation started on 18 April 2017 and employers had until 31 May 2017 to submit their Annual Reconciliation Declarations (EMP501),

Single registration

Allows taxpayers to register, maintain and view associated tax and customs registrations in a consolidated tax profile,

Issues with PDF’s?

See our browser compatibility guidelines when you experience any issues with opening PDF’s in eFiling,

Estate Reform

SARS introduced system changes in respect of deceased estates on 9 December 2016,

Trade Statistics

SARS released trade statistics for March 2017 recording a trade balance surplus of R11.44 billion based on exports of R101.23 billion and imports of R89.79 billion,

New eDNA system

SARS is rolling out a system at our branches where your fingerprints will be captured and authenticated for certain services,

Changes to personal details

If you received a message recently from SARS about changes to your personal details, you need to visit your nearest SARS branch to verify and avoid fraud,

eFiling downtime

Due to maintenance, eFiling will be unavailable on Friday, 20 Jan from 22h00 to Saturday, 21 Jan at 04h30. We apologise for any inconvenience.

Mobile Tax Units

Find out where our mobile units are this tax season and see our tax workshops to learn more about tax,

6 June 2017 – SARS does not share taxpayer information

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Pretoria, Tuesday, 6 June 2017 – SARS has noted the City Press article, Moyane okays R70m payment to Gupta’s, published on 4 June 2017.

SARS would like to place on record that assessments and refunds are dealt with through a risk engine that utilises tightly governed rules and processes, to ensure impartiality in SARS dealings with taxpayers.

Furthermore, SARS wishes to express its continued concern about the persistent media reporting of taxpayer matters. SARS once again reiterates that SARS is not allowed by Chapter 6 of the Tax Administration Act (TAA), 2011 to discuss or divulge information on individual taxpayers’ tax affairs. This right to confidentiality applies to all taxpayers irrespective of one’s position, rank or status.

We call on all South Africans, including the media to respect the confidentiality clause of Chapter 6 of the TAA 2011 to keep all taxpayers information private as prescribed by this Act.

SARS wishes to reassure all taxpayers that it does not discuss or divulge taxpayer information.

2 June 2017 – Annual Employer Reconciliations for 2016-17

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Pretoria, 2 June 2017 – As at 31 May 2017 which was the closure of the Annual Employer Reconciliation Declaration submissions for the period 1 March 2016 to 28 February 2017, SARS received 248 639 employer reconciliation submissions which accounted for 16 127 446 IRP 5 certificates being submitted.

The submissions of employer reconciliation declarations are crucial in ensuring that SARS is able to issue taxpayers with their IRP5/IT3 (a) certificates. These allow taxpayers to file their personal income tax returns on time during Tax Season, which commences on 1 July 2017.  The information is also used by SARS to pre-populate taxpayers 2017 personal income tax returns, making it easier for taxpayers to submit their tax returns.

SARS would like to appeal to those employers who have not yet submitted their reconciliation declarations to do so as soon as possible. Failure to submit employer reconciliations would impact negatively on employees as they would not be able to submit their income tax returns.

31 May 2017 – Trade Statistics for April 2017

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Pretoria, 31 May 2017– The South African Revenue Service (SARS) today releases trade statistics for April 2017 recording a trade balance surplus of R5.08 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date trade balance surplus (01 January to 30 April 2017) of R9.89 billion is an improvement on the deficit for the comparable period in 2016 of R26.39 billion.

Click here for the full document.

25 May 2017 – SARS did not comment on president Zuma’s tax matters

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Pretoria, Thursday 25 May 2017 – SARS has noted the News24 article, SARS investigating Nkandla fringe benefit tax, published on 24 May 2017.

SARS wishes to reiterate that SARS is prohibited by Chapter 6 of the Tax Administration Act (TAA), 2011 to discuss or divulge information on individual taxpayers’ tax affairs.

This right to confidentiality applies to all taxpayers irrespective of one’s position, rank or status.

The report attributes comments to the Democratic Alliance MP, Mr. Alf Lees that the DA welcomes the admission by Advocate Neo Tsholanku that SARS is indeed investigating the liability by President Zuma to pay tax on the fringe benefits related to his Nkandla private residence.

SARS wishes to state it clearly that it finds the comments as mischievous, incorrect and not true.

At no stage during the SCOPA meeting did Advocate Tsholanku make specific reference to the tax affairs of President Zuma. In fact, Advocate Tsholanku’s response to SCOPA was very clear and unambiguous that taxpayer matters are confidential and that SARS does not discuss such matters.

SARS wishes to call on all South Africans, including all political parties, to promote tax compliance and, at the same time, ensure that all citizens respect the confidentiality clause of Chapter 6 of the TAA 2011 to keep all tax payers information private as prescribed by this Act.

SARS wishes to reassure all taxpayers that it does not discuss or divulge taxpayer information.

23 May 2017 – SARS busts 13.2 kg of rhino horn, worth R1,7 million

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Pretoria, Tuesday 23 May 2017 – SARS Customs intercepted a consignment of rhino horn worth R1,7 Million at OR Tambo International Airport yesterday.  The bust follows on the heels of 7kg of rhino horn intercepted last Thursday.

The discovery was made when Customs officials subjected a box for scanning and detected images consistent with rhino horn.  Nine rhino horns cut into different sizes and weighing 13,2 kg were found.  The consignment was en-route to Hong Kong. 

The goods have been handed over to the South African Police Service and the Directorate for Priority Crime Investigations (HAWKS) for further investigation.

This bust is one of many by SARS.

19 May 2017 – SARS Customs bust – 7.035kg rhino horn

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Pretoria, Friday 19 May 2017 – SARS Customs intercepted 7.035kg of rhino horn declared as ‘tea bags’ at OR Tambo International Airport on 17 May.

The discovery was made when Customs officials subjected the identified shipment for scanning. During the scanning process images consistent with rhino horn were observed.

Upon a physical inspection the contents of the box were found to include 8 pieces of rhino horn wrapped in foil. The rhino horn was concealed amongst packets of sweets and chocolates. The shipment was destined for Hong Kong via Qatar, Doha.

The goods have been handed over to the South African Police Service and the Directorate for Priority Crime Investigations (HAWKS) for further investigation.

11 May 2017 – Customs officials confiscate 13kg cocaine worth R3,6 million at ORTIA

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Pretoria, 11 May 2017 – Customs officials at the Oliver Tambo International Airport confiscated 13kg of cocaine in two separate incidents on 7 and 8 May 2017. The estimated street value of the cocaine is approximately R3, 6 million.

In both cases the drugs were found after Customs officials stopped and engaged passengers from incoming flights from South America.  The luggage of two specific passengers were identified for further scrutiny, scanned by the Customs Baggage scanner and brought to the Customs search area for additional physical searches in the presence of the passengers.

In the first incident, on Sunday, 7 May, cocaine weighing 1,7kg was found in hidden compartments inside three new handbags in the luggage of a female traveller after a narcotics detective dog reacted positively to the luggage.

In the second incident, on Monday, 8 May, the luggage of a female traveller was physically searched after the scanner revealed a suspicious image. A Customs official opened a tin of canned fruit found inside the luggage. A powdery substance was found inside that tested positive for cocaine. Ten tins weighing 6,8kg (including the tins) were handed over to the South African Police Service.

Both the passengers were also handed over to the South African Police Service (SAPS).

To see the pictures, click here.

8 May 2017 – Launch of Customs Preferred Trader Programme

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Pretoria, 8 May 2017 – Today saw the official launch of the South African Revenue Service’s Customs Preferred Trader Programme. This marks the culmination of an extensive process aimed at introducing one of the most significant trade facilitation initiatives in SARS’ customs modernisation journey.

Currently, 28 Customs clients have been awarded Preferred Trader accreditation status following a lengthy period of audits and customs competency assessments.

The Preferred Trader journey began in 2011 after extensive benchmarking and consultations with trade. It was set up under the World Trade Organisation’s internationally recognised Authorised Economic Operator (AEO) programme. 

The main objective of the Preferred Trader Programme is to move away from the traditional Customs gate-keeper approach, to a more risk-based approach.  Compliant traders will receive benefits as stipulated in legislation for accredited clients.  This will reduce the frustrations and the costs that can be incurred by traders who are operating in the global market.

In broad terms, the Preferred Trader Programme is a relationship between a Customs client and SARS Customs in order to:

  • Achieve benefits for both parties

  • Stamp out misconduct and fraudulent activities

  • Obtain and maintain a high level of compliance

  • Promote legitimate trade facilitation.

Some of the benefits to trade include:

  • The appointment of a Customs Relationship Manager tasked with facilitating the relationship between the client and Customs

  • Reduction of the amount of security required for compliance with a Customs procedure

  • Fewer routine documentary and physical inspections

  • Prioritising a request for tariff and valuation determinations

  • Prioritising access to non-intrusive inspection techniques when goods are stopped or detained for inspection.

A specialised Preferred Trader team has been set up by SARS to handle applications and audits, while an Accreditation Review Customs Committee at SARS head office makes a final decision on all accreditation submissions. Currently over 250 Customs clients are going through the Preferred Trader accreditation process and with a dedicated team and process now set up, it is envisaged that all these outstanding applications will be processed speedily in the coming months.

All importers and exporters may apply for Preferred Trader status if they meet certain compliance criteria. For more information, interested parties can email preferredtrader@sars.gov.za or go to the SARS website: www.sars.gov.za. 

5 May 2017 – Further clarification on the vat registration of non-executive directors

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Pretoria, 5 May 2017 – The South African Revenue Service (SARS) has clarified certain aspects regarding the liability of non-executive directors (NEDs) of companies to register for and charge VAT.

On 10 February 2017, two binding general rulings (BGR) – BGR No’s 40 and 41 were issued confirming the application of the law as from 1 June 2017 in connection with VAT registration and employees’ tax (PAYE). Subsequently, a further media statement was issued on 14 February 2017 to alert the public of the BGRs, as there was apparently some uncertainty on how the tax laws apply to NEDs.

In order to further clarify the position regarding VAT registration for NEDs, an updated version of BGR 41 was published on 4 May 2017. To access the updated BGR 41 click here.

The updated BGR 41 clarifies that:

  •  a NED who is liable to register for VAT but has not done so yet, must register and account for VAT with effect from 1 June 2017 unless an earlier date of liability is chosen.

  • a NED who was actually registered for VAT before 1 June 2017 for other activities, but did not charge VAT on the NED fees must charge VAT with effect from 1 June 2017 unless that person chooses to account for VAT on those fees from an earlier date.

This applies regardless of whether the fees earned by NEDs were subject to PAYE or not.

SARS would like to encourage NEDs that have a liability to register for VAT, to register as soon as possible via SARS eFiling at www.sarsefiling.co.za or to visit their nearest SARS branch. Reference can be made to the VAT-REG-02-G01 – Guide for Completion of VAT Registration Application Forms on the SARS website for further information regarding the VAT registration procedure.
Any person that requires a ruling on any VAT matter pertaining to NEDs, can refer to the Quick reference guide on VAT ruling application procedure on how to apply for a ruling on the SARS website. Properly completed ruling applications may be sent for attention to VATRulings@sars.gov.za.