South Africa has issued six income tax notices setting out the eligibility, fees, application requirements, rejection grounds and procedures for its Double Taxation Agreement advance pricing agreement system, with the measures applying from 7 August 2026.
South Africa has introduced a detailed framework for its Double Taxation Agreement (DTA) advance pricing agreement (APA) system through six income tax notices covering applicant eligibility, fees, rejection grounds, processing requirements, preliminary agreement information and operating procedures.
The South African Revenue Service (SARS) promulgated Notices 7787 to 7792 in Government Gazette 55152 on 7 August 2026 under the Income Tax Act, 1962. All six notices apply to DTA APA applications received on or after 7 August 2026.
Notice 7787 — Fees payable for a DTA APA
Notice 7787, issued under section 76D, prescribes the fees payable by an applicant in an application for a DTA advance pricing agreement.
A pre-application consultation fee of ZAR 100,000 must be paid within seven days of the invoice date.
The main application carries a total processing fee of ZAR 1,000,000. An upfront deposit of ZAR 200,000 is payable within seven days of the invoice date, while the remaining ZAR 800,000 is payable in eight equal instalments of ZAR 100,000 at 90-day intervals.
SARS may charge additional amounts to recover ancillary costs associated with processing an application, in consultation with the applicant.
An amendment fee is determined according to the specific facts and circumstances of the case.
An annual maintenance fee of ZAR 100,000 applies once a DTA APA has been successfully concluded or extended. Extension fees are determined based on the facts and circumstances and are capped at the cost of an initial application, meaning they cannot exceed ZAR 1,000,000.
All fees charged by SARS under the APA programme are non-refundable. Interest will be charged at the official rate on late payments.
Notice 7788 — Persons eligible to apply for a DTA APA
Notice 7788, issued under section 76C, prescribes the persons eligible to apply to the Commissioner for a DTA advance pricing agreement.
An applicant must have turnover exceeding ZAR 10 billion in the year of assessment preceding the tax year in which they request a pre-application consultation meeting.
The affected transaction must relate to distribution, manufacturing or intragroup services. It must not constitute financial assistance, and it must not constitute or result in the creation of intangible property.
For each year of assessment under section 76K(5) of the Income Tax Act, the expected value of the transaction must exceed ZAR 1 billion for distribution or manufacturing functions, or ZAR 300 million for intragroup services.
The applicant must also be tax compliant to the extent referred to in section 256(3) of the Tax Administration Act and must be a “resident” as defined in section 1 of the Income Tax Act.
Even where all eligibility criteria are met, SARS retains discretion to accept or reject an application based on the nature of the affected transaction, the industry in which the applicant operates and SARS’s available resources.
Notice 7789 — Additional grounds for rejection
Notice 7789, issued under section 76I(b), prescribes additional requirements that will lead to the rejection of an application for a DTA advance pricing agreement.
SARS may reject an application where the proposed agreement does not reflect the economic reality of the affected transaction, requires SARS to consider only the legal form of the transaction without taking its substance into account, or where the transaction appears to lack commercial substance or was entered into primarily to avoid tax.
Applications involving the interpretation of a general or specific anti-avoidance provision or legal doctrine may also be rejected.
Rejection may also apply where the application concerns an issue that is subject to a published proposed tax amendment, active dispute resolution under Chapter 9 of the Tax Administration Act or a DTA article, or an active voluntary disclosure program application by the taxpayer.
Applications covering tax consequences already addressed in another concluded agreement with SARS may also be rejected.
Other grounds include material differences between the application and the details provided during the pre-application consultation, failure to provide additional information requested by SARS, failure to pay prescribed fees and failure to meet tax-compliance requirements under section 256(3) of the Tax Administration Act.
Applications submitted for academic purposes, or where the issue raised is frivolous or vexatious, may also be rejected. SARS may additionally reject an application if the competent authority of the other country is unwilling to participate in the DTA APA.
Notice 7790 — Requirements for processing applications
Notice 7790, issued under section 76J(1), prescribes the requirements for processing an application for a DTA advance pricing agreement.
Once an APA application is accepted, SARS must consult with the applicant and the competent authority of the other country to agree on a project plan.
The plan must identify the processing stages, key milestones and expected duration of each stage.
SARS may request further relevant information, including information relating to the multinational enterprise as a whole. It may also conduct functional analysis interviews, engage industry experts, undertake benchmarking studies and gather and analyse data on comparable entities.
Where practical, information gathering, site visits and functional analysis interviews will be coordinated with the other competent authority. Information gathered separately must be shared with the other competent authority.
The applicant must provide requested information to both competent authorities simultaneously, even if the information was requested by only one authority.
After receiving and considering the relevant information, SARS will compile a position paper containing information needed for discussions with the other competent authority. The applicant will not have a direct role in preparing the position paper or in subsequent negotiations between the competent authorities.
Notice 7791 — Information in a preliminary DTA APA
Notice 7791, issued under section 76J(3), prescribes the information to be contained in a preliminary DTA advance pricing agreement.
The required administrative information includes the legal names, physical and postal addresses, e-mail addresses and countries of residence of all participating parties. Details of the relevant competent authorities, the filing date of the DTA APA application and definitions of key terms must also be included.
The preliminary agreement must contain information on the applicant’s business activities, the affected transaction and functional analysis, organisational structure, latest available financial information, accounting standards and transaction currency.
For each affected transaction, the required information includes the applicable critical assumptions, quantum, the selection of the most appropriate transfer pricing method, detailed selection of comparables, the determined arm’s length transfer price, the designated arm’s length allocation and any necessary transfer pricing adjustments.
The agreement must also specify its duration and the deadline for compliance reporting.
The applicant must undertake to submit amended income tax returns to SARS applying the agreed-upon transfer pricing methodology within 21 days after the DTA APA is finalised.
Notice 7792 — Procedures for operating the DTA APA system
Notice 7792, issued under section 76P, prescribes the procedures and guidelines for the implementation and operation of the DTA advance pricing agreement system.
All correspondence relating to the administration of the DTA APA system must be conducted in English. SARS will not accept an APA application unless both competent authorities agree before submission that all processing and proceedings will be conducted in English.
Prospective applicants must request a pre-application consultation meeting by email and submit a presentation containing the information required by section 76E(3) of the Income Tax Act.
SARS will issue an invoice for the pre-application consultation fee under section 76D(2) of the Income Tax Act. The fee must be paid within seven days of the invoice date, after which SARS will arrange the consultation meeting once the required presentation has been received.
Where applicable, an applicant must make a specific request for a rollback under section 76K(6) during the pre-application consultation.
Issues concerning the limitation period for issuing assessments under section 99 of the Tax Administration Act must also be addressed during the initial consultation.
The procedures and guidelines apply to all DTA APA applications received on or after 7 August 2026.
The six notices establish the main procedural and administrative requirements for South Africa’s DTA APA system, from eligibility and application fees to processing, information requirements and rejection grounds.
