Recently, the South African Revenue Service (SARS) published a Discussion paper on Advance Pricing Agreements (APAs). Discussion Papers are published by National Treasury or SARS to obtain public comment on specific tax policy matters before draft tax legislation or a draft interpretation note is prepared. The due date for comments is 18 December 2020. At present, no APAs are available in South Africa for indicating transfer pricing issues.
The Finance Minister announced in his National Budget Speech to set up a tax review committee, the Davis Tax Committee (DTC) was formed on 17 July 2013 to inquire into the role of South Africa’s tax system in the promotion of inclusive economic growth, employment creation, development and fiscal sustainability. On the international front, the DTC was required to address concerns about BEPS, especially in the context of corporate income tax, as identified by the G20 and the OECD. The DTC’s reports recommend the implementation of an APA programme in South Africa but highlight capacity constraints at SARS in dealing with transfer pricing and APAs.
