SARS Snapshot: Key Highlights for March 2024
In our March edition of the SARS Newsletter we bring you the latest updates on trade statistics, excise duties, tariff amendments, and key legal notices that impact businesses and individuals alike. Stay informed with our comprehensive coverage of significant South African Revenue Service developments.
SARS GENERAL MATTERS
Trade Statistics - February 2024
South Africa has recorded a preliminary trade balance surplus of R14.0 billion in February 2024, attributed to exports worth R161.8 billion against imports of R147.8 billion. This positive balance underscores the vibrant trade activities shaping our economy's outlook. For more details, explore the Trade Statistics webpage.
2. Taxpayer Compliance
Taxpayers are urged to settle your outstanding tax and customs payments as soon as possible. Payment options available via a bank, electronic funds transfer (EFT), eFiling or the SARS MobiApp Customs payments can also be made at any SARS Customs office.
Taxpayers and traders should perform the payment transaction during business hours to authorise their banking institutions to release the payment to SARS – a required step if the payment is made via eFiling and MobiApp. Balance amount enquiries may be made by requesting a statement of account on eFiling or the SARS MobiApp or by SMS to SARS on 47277.
3. Tax Workshops and Mobile Tax Unit Schedules
Stay ahead with our tax workshops in North West province and the mobile tax unit schedules for Limpopo and Western Cape in April 2024. These sessions are pivotal for understanding tax obligations and updates.
LEGAL MATTERS
4. High Court decision on British Petroleum of South Africa's (BPSA)
The High Court's decision dismissed BPSA’s appeal to have SARS refund duty claims and levy forfeiture for allegedly exported fuel to Zimbabwe, under the Promotion of Administrative Justice Act (PAJA). This was due to BPSA’s failure to prove that fuel was exported to Zimbabwe and the fact that it could not identify the consignee who received the export delivery.
NEW AND UPDATED GUIDES
5. PAYE Employer Reconciliation BRS for the 2025 Tax Year
The updated PAYE Employer Reconciliation BRS for the 2025 tax year includes the following changes:
New source code (3926) for the withdrawal from a retirement fund from the savings component/pot.
Amendment of descriptions or validation rules for:
Unclaimed benefits (source code 3909)
Certificate Number (source code 3010)
Directive Number (source code 3230)
Directive Income Source Code (source code 3232)
Transfer of Unclaimed Benefits (source code 3923)
NED Directors or Audit Committee Member Fees (source code 3620/3670)
6. An Overview of Manufacturing Rebate and Drawback Procedures
An Overview of Manufacturing Rebate and Drawback Procedures simplifies the understanding of manufacturing rebates and drawback procedures, detailing customs duty and VAT benefits for imported materials used in local production. It covers eligibility, processing types, and application requirements, aiming to support manufacturers in utilizing customs incentives. This resource is informational and not legally binding.
7. Customs Outward Processing Procedure Guide
The Customs Outward Processing Procedure guide by SARS explains how to temporarily export and re-import goods for processing or repair, detailing eligibility for duty rebates under specific legislation. It emphasizes compliance with SARS registration, permit acquisition, and maintaining goods' character and ownership for tax benefits.
8. Quick Reference Table to Amendments, Substitutions, and Cancellation of Bills of Entry Guide
The Quick Reference Table to Amendments, Substitutions, and Cancellation of Bills of Entry provides a concise overview of correcting customs entries according to the Customs and Excise Act of 1964. Highlighting procedural steps, legal grounds, and duty implications, it's meant for informational use, directing further SARS resources. Published on 25 March 2024, it aims to facilitate compliance with customs declarations in South Africa.
9. Other Fermented Beverages Policy
The Other Fermented Beverages policy has been updated to indicate the exclusions in terms of item 624.50.
10. Excise Spirits policy
The Excise Spirits policy has been updated to align with the court case confirming that the absolute alcohol content of flavourings is dutiable and the legislative requirements and changes for Rebate item 621.21 and 624.50.
11. Environmental Account for Carbon Tax guide
The DA 180 Environmental Account for Carbon Tax guide has been updated to align with the relevant sections of the Act and with the new calculation of net levy payable.
12. Customs Scanner Operations policy
The updated Customs Scanner Operations policy includes the cargo scanner process at the O.R. Tambo International Airport.
CUSTOMS AND EXCISE NEWS
13. Excise Duty - Ad Valorem Update
Effective from 28 March 2024, Ad Valorem Excise Duty will be levied on specific locally manufactured and imported goods. Recent updates to policy and annexure ensure alignment with legislation, impacting a range of products with specific duty rates. Refer to the SE-ADV-02 – Ad Valorem Excise Duty – External Policy and SE-ADV-02-A01 – Ad Valorem Value Determination – External Annexure for comprehensive details.
14. Tariff Amendments Effective from 1 April 2024
The following amendments give effect to the Budget proposals announced by the Minister of Finance on 21 February 2024:
Notice R.4551: Amendment to Part 3A of Schedule No. 1 introduces an increase of 4c/bag in the environmental levy on plastic bags, raising the rate from 28c/bag to 32c/bag.
Notice R.4552: Amendment to Part 3C of Schedule No. 1 increases the environmental levy on electric filament lamps by R5/lamp, from R15/lamp to R20/lamp.
Notice R.4553: Amendment to Part 3D of Schedule No. 1 adjusts the rate of the motor vehicle carbon dioxide emissions levy to R146 per g/km CO2 for new passenger vehicles exceeding 95g/km emissions and to R195 per g/km CO2 for new double cab vehicles exceeding 175g/km emissions.
Notice R.4554: Amendment to Part 3F of Schedule No. 1 with a retrospective effect from 1 January 2024, increases the environmental levy on carbon dioxide equivalent from R159 to R190 per tonne.
Notice R.4555: Amendment to Part 5A of Schedule No. 1, also with retrospective effect from 1 January 2024, changes the density factors for calculating the carbon fuel levy to 0.7405 kg/l for petrol and 0.8255 kg/l for diesel.
Notice R.4556: Further amends Part 5A of Schedule No. 1 by increasing the carbon fuel levy to 11c/li for petrol and 14c/li for diesel, effective from 3 April 2024.
15. Tariff Amendments with Various Implementation Dates
Notices R.4511, R.4512, and R.4513: These amendments relate to safeguard duties on imports of certain threaded fasteners from the Republic of the Philippines, with phased rates from 48.04% decreasing annually until 23 July 2026.
Notice R.4514: This amendment increases the rate of customs duty on sugar from free of duty to 140.91c/kg, effective from 15 March 2024.
16. Tariff Amendments effective from 1 March 2024
Notices R.4441, R.4440, R.4442, and R.4439: Introduce various amendments, including adjustments to customs duty on canned minced anchovies and modifications to rebate provisions for tall oil fatty acids and meat and edible offal of Gallus Domesticus.
17. Updated facility codes in Box 30
The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include a new container depot – Imperial Clearing and Forwarding South Africa in Durban. See the facility code list here.
UPCOMING DEADLINES
18. Excise payment and submission dates for 2024/2025
Take note of the excise payment and submission dates with the first quarterly payments due on or before 25 April 2024.
21. Annual Employer Reconciliations
PAYE annual employer reconciliations open on 1 April and closes on 31 May 2024.
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