SARS Web Alert 40 of 2025 | Changes to the Legal Counsel pages

Category 3 – Secondary Legislation

Tariff Amendments 2025

Customs and Excise Act, 1964

The tariffs amendments notices , as published in  Government Gazette  53461 of 3 October 2025, relate to the following amendments, with effect from 1 January 2026:

·        Part 1 of Schedule No.1 (R.6710) , by the substitution of various tariff subheadings, to implement the phase down rates of customs duties in terms of the African Continental Free Trade Area (AfCFTA) Agreement

·        Part 1 of Schedule No. 1 (R.6709) , to provide for technical amendments, by the insertion of new 8-digit tariff subheadings under Chapters 29, 38, 68, 70, 74 and 83

·        Schedule No. 2 (R.6711) , by the substitution of the heading to include the reference to “Safeguard”

  Category 5 – Interpretation and Rulings

Interpretation Notes 101–120

Income Tax Act, 1962

1.       Interpretation Note 119 (Issue   2)  – Deductions in respect of improvements to land or buildings not owned by a taxpayer

Explanatory Note

Interpretation Note 119 provides guidance on the interpretation and application of the following:

1. Section 12N, which facilitates allowances under specified sections of the Act for improvements made to land or buildings not owned by a taxpayer but over which the taxpayer holds a right of use or occupation. The improvement must be effected under a Public Private Partnership, a lease agreement with the state or certain other tax-exempt statutory bodies and the state or that body owns the land or building, or under the Independent Power Producer Procurement Programme.
2. Section 12NA, which deals with deductions for improvements effected under a PPP by a person to land or to a building over which the state holds the right of use or occupation.

Category 6 – Dispute Resolution & Judgments

Tax Court 2025–2023

Mineral and Petroleum Resources Royalty Act, 2008, and Tax Administration Act, 2011

1.       SARSTC IT 46010 (MPRR) [2025] ZATC JHB (5 September 2025)

Summary

Royalty liability and calculation.

Category 10 – Legal Counsel Archive

Interpretation Notes

Income Tax Act, 1962

1.       Interpretation Note 119  – Deductions in respect of improvements to land or buildings not owned by a taxpayer

Older Drafts Open for Comment

Below are drafts previously published but still open for comment, which are included for ease of reference.

You need respond to them only if you have not already done so.

All comments received are considered for inclusion into the final documents after the comment period.

Category 1 – Preparation of Legislation

Draft Documents for Public Comment

Customs and Excise Act, 1964

1.       Draft amendments to rules under sections 40 , 41 and 120  – Insertion of rules under sections 40 and 41 relating to the manner in which bills of entry may be adjusted where customs value declared is affected by transfer pricing adjustments

Explanatory Note

Draft rules have been inserted under sections 40 and 41 to explain how to adjust bills of entry when transfer pricing affects customs value. These rules outline the process for updating customs value by sending a notice to the Commissioner with amended invoices or debit/credit notes.

They also explain what documents must be included, how to pay any duty and VAT owed after the adjustment, and how importers can apply for refunds if they overpaid due to transfer pricing changes.

Comments on rules and forms to be recorded on the Customs & Excise Rule Amendments Comment Sheet .

Comments can be submitted to –

2.       C&E_Legislativecomments@sars.gov.za

Due date for comment: 3 October 2025

National Legislation

3.        Draft Crypto-Asset Reporting Framework (CARF) Regulations

1. Explanatory Note on Publication of draft CARF Regulations

4.        Draft Revised Common Reporting Standard (CRS) Regulations

1. Explanatory Note on Publication of Draft Revised CRS Regulations

Explanatory Note

See the respective explanatory notes relating to the CARF  and CRS  Regulations.

Comments can be submitted to –

5.       ACollins@sars.gov.za

Due date for comment: 3 October 2025

Income Tax Act, 1962

6.       Draft Interpretation Note 64 (Issue 5)  – Income tax exemption: Bodies corporate, share block companies, and associations of persons managing the collective interests common to all members

Explanatory Note

This Interpretation Note provides guidance on the interpretation and application of section 10(1)( e ), which exempts from income tax the levy income of a body corporate, a share block company, and any other association of persons.

This Note is published as a draft for comment since technical changes were made, including the treatment of the carry-forward of assessed losses and retrospective approval of associations of persons.

Comments can be submitted to –

7.       policycomments@sars.gov.za

Due date for comment: 10 October 2025