South Africa: Tax Authorities

This issue of ENS' tax in brief provides a comprehensive snapshot of the latest tax developments in South Africa, covering recent case law on VAT apportionment methods, newly published draft taxation bills, income tax notices regarding double taxation agreement advance pricing agreements, and significant updates from SARS including guidance on employment tax incentives and VAT deregistration requirements for schools.

This comprehensive briefing covers recent tax law changes, regulatory updates, and compliance requirements across multiple African jurisdictions including Benin, Botswana, Burkina Faso, Burundi, and many others. The updates span corporate tax reforms, VAT amendments, withholding tax changes, and new administrative procedures affecting businesses operating throughout the continent.

Cross-border tax compliance between Botswana and South Africa is undergoing significant transformation as SARS deploys AI-driven enforcement tools, Botswana proposes a shift to residence-based taxation, and global minimum...

The Constitutional Court's decision in Absa Bank Ltd v SARS marks a pivotal shift in how South African courts approach tax avoidance structures, moving beyond technical compliance to examine the true commercial substance of transactions. This judgment signals a broader regulatory trend where authorities increasingly look through carefully engineered corporate structures to ask what was really happening, challenging the long-held assumption that technical legal compliance provides immunity from scrutiny.

The Constitutional Court’s judgment in Absa Bank Ltd and Another v C:SARS is one of the most important tax judgments delivered in South Africa in recent years.

South Africa's transition from JIBAR to ZARONIA introduces Credit Adjustment Spreads (CAS) to preserve loan economics, but what happens when parties negotiate their own spread instead of using the official rate? The draft finance bill empowers SARB to set mandatory CAS values, yet leaves critical tax questions unanswered for those who deviate from the prescribed methodology.

In a significant judgment handed down on 5 September 2025 and published by SARS today, the Tax Court upheld an appeal by Taxpayer MPT against additional royalty assessments...

For enterprises in South Africa that operate within the dynamic food and beverage industry, understanding and effectively utilising indirect tax incentives are a powerful way to enhance profitability and gain a competitive edge.

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