Taxand South Africa discusses recent binding private rulings, binding class rulings and binding general rulings.

 

The South African Revenue Service (SARS) has recently released, inter alia, the following binding private rulings (BPRs), binding class rulings (BCRs) and binding general rulings (BGRs):

 

BGR 9: Taxes on income and substantially similar taxes for purposes of South Africa’s tax treaties

 

  • This ruling provides a non-exhaustive list of the taxes administered by SARS which, in its opinion, constitute taxes on income or substantially similar taxes for purposes of South Africa’s tax treaties.

BGR 40: Remuneration paid to non-executive directors

 

  • This ruling provides clarity on the employees’ tax consequences of income earned by a non-executive director, as well as the effect of such consequences on the prohibition against deductions by office holders under section 23(m) of the Income Tax Act, 1962.

BGR 41: VAT treatment of non-executive directors

 

  • This ruling determines the value-added tax (VAT) treatment of the activities conducted by non-executive directors and clarifies whether those activities fall within the ambit of proviso (iii)(aa) or proviso (iii)(bb) to the definition of enterprise in section 1(1) of the VAT Act, 1991.

Discover more: Recent binding rulings

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Taxand's Take

Taxpayers in South Africa should take note of this update to ensure they remain compliant.

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Article tags

International Tax | South Africa

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