Africa Tax In Brief

Below, please find issue 168 of ENS’ tax in brief, a snapshot of the latest tax developments in South Africa.

case law

• Supreme Court of Appeal | The Commissioner for the South African Revenue Service v Poulter (1110/2024) [2026] ZASCA 68
  • This judgment concerns an appeal by SARS against the decision of the full court of the Western Cape Division of the High Court, Cape Town, which had set aside a Tax Court order barring Mr Gary Van der Merwe, a lay person duly authorised by Ms Candice-Jean Poulter (the “Taxpayer”), from appearing on her behalf in the Tax Court concerning an appeal against a 2018 tax assessment.
  • The Supreme Court of Appeal (“SCA”) considered whether sections 12 and 125 of the Tax Administration Act, No. 28 of 2011, read with rule 44(7) of the Tax Court Rules and section 25 of the Legal Practice Act, No. 28 of 2014, precluded a non-legal practitioner from appearing on behalf of the Taxpayer in the Tax Court.
  • The SCA held, in agreement with the court a quo, that the applicable law does not require a taxpayer’s authorised representative to be a legal practitioner, and that a duly authorised lay person may appear and present a taxpayer’s case in the Tax Court.
  • The SCA further confirmed that the Tax Court is not a court contemplated in section 166 of the Constitution, as it is neither listed in that section nor established in terms of an Act of Parliament but rather is established on an ad hoc basis by Presidential proclamation in the Gazette.
  • The appeal was dismissed with costs.
  • Find a link to the judgment here.
• High Court | Ocean Ark Shipping Ltd and Another v CSARS (2025/209746) [2026] ZAWCHC 201
  • This judgment concerns an urgent application for the temporary suspension of the Commissioner for the South African Revenue Services’ (the “Commissioner” or “SARS”) decisions in terms of section 96 of the Customs and Excise Act, No. 91 of 1964 (“Customs and Excise Act”) pertaining to the detention, seizure and deemed importation of MT Essien (the “Vessel”) belonging to the first applicant, and for the release of such Vessel, subject to the provision by the second applicant of a guarantee in respect of the value of the Vessel and any value-added tax, penalties and interest claimed by the Commissioner.
  • The applicants succeeded in obtaining the interim relief, which raised novel questions relating to inter alia maritime law and certain constitutional aspects. Pending the outcome of the review application instituted by the applicants, the Commissioner’s decisions have been temporarily suspended.
  • The application was granted with costs.
  • Find a link to the judgment here.

legislation and draft legislation

• Customs and Excise Act | Draft amendment to rules under section 120 o Rule 120.13 deals with advance foreign exchange payments in relation to goods that are to be imported. Importers are required to notify SARS of advance foreign exchange payments exceeding R50 000. The proposed amendments increase that amount to R100 000 as a result of the increase of cross-border transaction limits by the South African Reserve Bank by Exchange Control Circular 3-2026.
  • Find a copy of the draft amendment here.

SARS publications

• Monthly Tax Digest | May 2026 o SARS released the May issue of the Tax Digest, which highlights the importance of compliance for both trusts and employers.
  • Find the Tax Digest here.
• Notice | China zero-tariff trade implementation o This notice informs all traders that the China trade scheme officially came into effect on 1 May 2026. o SARS, in consultation with the Chinese authorities, is finalising the legal framework required for the scheme and is establishing the system to issue Rules of Origin Certificates.
  • Find the full notice here.

exchange control

• Media Statement | Extension of deadline for public comment on the draft Capital Flow Management Regulations, 2026
  • National Treasury and the South African Reserve Bank have released a statement informing stakeholders that the deadline for submitting public comments on the draft Capital Flow Management Regulations, 2026 (the “draft Regulations”), has been extended from 18 May 2026 to 30 June 2026.
  • The statement includes comments on the future treatment of crypto assets, noting that the draft Regulations do not intend to criminalise the possession of crypto assets or require retrospective application.
  • Written comments on the draft Regulations must be sent to National Treasury at commentdraftlegislation@treasury.gov.za by close of business on Tuesday, 30 June 2026.
  • Find the full statement here.

advance tax rulings

• Binding Private Ruling 428 (“BPR 428”) | Delayed contribution equity investment structure
  • This ruling determines the income tax implications of a share subscription, based on a Delayed Contribution Equity Investment Structure (DCEIS), and the deductibility of expenditure under section 11D of the Income Tax Act 58 of 1962.
  • Find a copy of BPR 428 here.

customs and excise

• Customs and Excise Act | Tariff amendments
• The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the following amendments, with effect from 6 May 2026:
  • Part 3 of Schedule No. 6, as a consequence of the reduction in the general fuel levy as announced by the Minister of Finance on 28 April 2026; the diesel refund provisions are adjusted accordingly
    • Find a copy of the notice here.
  • Part 5A of Schedule No. 1, to adjust the general fuel levy on diesel by decreasing the general fuel levy on diesel from 93 cents per litre to nil cents per litre, in order to give effect to the announcement by the Minister of Finance on 28 April 2026
    • Find a copy of the notice here.
  • Amendment to Part 5A of Schedule No. 1, to insert item 195.10.03/2710.12.02 to maintain the rate of the general fuel levy at 110c/li on petrol in order to give effect to the announcement by the Minister of Finance on 28 April 2026
    • Find a copy of the notice here.
• With effect from 15 May 2026:
  • Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10, 1101.00.20, 1101.00.30 and 1101.00.90, to reduce the rate of customs duty on wheat and wheaten flour from 61.90c/kg and 92.85c/kg, respectively to 15.37c/kg and 23.05c/kg, in terms of the existing variable tariff formula (ITAC Minute M13/2025).
    • Find a copy of the notice here.
  • Part 2 of Schedule No. 4, by the insertion and substitution of various items under rebate item 460.15 in order to provide for a rebate facility on various steel products (ITAC Report 764).
    • Find a copy of the notice here.
  • Part 1 of Schedule No. 1, by the substitution of various tariff subheadings under Chapters 72, 73, 82 and 83 in order to increase the rates of customs duties (ITAC Report 764).
    • Find a copy of the notice here.
• With effect from 3 June 2026:
  • Part 5A of Schedule No. 1, to provide for an increase in the rate of the general fuel levy from 110 cents per litre to 260 cents per litre on petrol and an increase from nil cents per litre to 197 cents per litre on diesel in order to give effect to the announcement by the Minister of Finance on 28 April 2026.
    • Find a copy of the notice here. o Part 3 of Schedule No. 6, as a consequence of the increase in the general fuel levy as announced by the Minister of Finance on 28 April 2026; the diesel refund provisions are adjusted accordingly.
    • Find a copy of the notice here.
• With effect from 1 July 2026:
  • Part 5A of Schedule No. 1, to provide for an increase in the rate of the general fuel levy from 260 cents per litre to 410 cents per litre on petrol and an increase from 197 cents per litre to 393 cents per litre on diesel in order to give effect to the announcement by the Minister of Finance on 28 April 2026.
    • Find a copy of the notice here.
  • Part 3 of Schedule No. 6, as a consequence of the increase in the general fuel levy as announced by the Minister of Finance on 28 April 2026; the diesel refund provisions are adjusted accordingly.
    • Find a copy of the notice here.
• With effect up to and including 1 May 2027:
  • Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to include Indonesia to being subject to the payment of the safeguard duty of a rate of 11% on certain hot-rolled steel products, classifiable under Chapter 72 (ITAC Minute M07/2025).
    • Find a copy of the notice here.
• With effect from 2 May 2027 up to and including 1 May 2028:
  • Part 3 of Schedule No. 2, by the substitution of various items under item 260.03, in order to include Indonesia to being subject to the payment of the safeguard duty of a rate of 9% on certain hot-rolled steel products, classifiable under Chapter 72 (ITAC Minute M07/2025).
    • Find a copy of the notice here.
• Customs and Excise Act | Registration, Licensing and Accreditation
  • The facility codes used in Box 30 on the Goods Declaration have been updated to include the Air Menzies International SA (Pty) Ltd degrouping facility located at Oliver Reginald Tambo International Airport (ORTIA).
  • This addition enables Customs to transmit electronic messages communicating the status of the consignment to these facilities.
  • Find a copy of the updated list here.

international

• Organisation for Economic Co-Operation and Development (“OECD”) | Toolkit to support consistent implementation of the global minimum tax
  • The OECD has released a new implementation toolkit to support tax administrations in applying the Global Minimum Tax in a consistent and coordinated way, reducing administrative and compliance burdens.
  • Find more information here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.