S.Arica updates: Foreign Employment Income Exemption & SARS issues updated list of jurisdictions contemplated in CbC regulations

South Africa

Report from our correspondent Lutando Mvovo,

South Africa

Foreign Employment Income Exemption;

Frequently Asked Questions (FAQs) (Issue 2)On 22 October 2019, the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... (SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently...) published frequently asked questions (Issue 2) on the foreign employment income exemption. The FAQs are drafted to assist employees, employers and the public to obtain clarity and to ensure consistency on certain practical and technical aspects relating to the amendment of the foreign employment income provision. The FAQs are, however, not intended to be used as a legal reference.

The FAQs are also intended to solicit further questions regarding the amendment and will, therefore, be updated periodically to address these questions, as well as any changes to the legislation.

Any questions that have not been addressed in the FAQs can be sent to foreignEmployment@sars.gov.zaFurther developments will be reported in due course.

South Africa

Report from our correspondent Lutando Mvovo,

South Africa

SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... issues updated list of jurisdictions contemplated in CbC regulations

On 18 October 2019, the South African Revenue ServiceThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently... (SARSThe South African Revenue Service (SARS) is the official tax authority responsible for the administration and enforcement of tax laws in South Africa. It plays a crucial role in managing the country’s fiscal policy by collecting revenue, administering customs, and ensuring compliance with tax legislation. Established under the South African Revenue Service Act, No. 34 of 1997, SARS functions independently...) published an updated list of jurisdictions contemplated in article 2(2)(ii)(b) of the country-by-country (CbC) regulations specifying the changes to the CbC reporting standard for multinational enterprisesWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... (MNEsWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include...). The list is intended to assist members of MNEWhat are Multinational Enterprises (MNEs)? Multinational Enterprises, commonly referred to as MNEs, are corporations that operate in multiple countries through various subsidiaries, branches, or affiliates. These entities maintain a central management structure while leveraging diverse resources, labour markets, and customer bases across borders. The fundamental aspect that distinguishes MNEs from other corporate forms is their cross-border activity, which can include... groups that are tax resident in South Africa in complying with their obligations under article 2(2)(ii)(b) of the CbC regulations.

The process of concluding and activating Qualifying Competent Authority Agreements is ongoing and the list will be updated in the future. The list can be accessed via the SARS website.

Further developments will be reported in due course.