SARS releases a model and draft legislative framework in respect of an advance pricing agreement programme for South Africa.

In keeping with international developments and the recommendations of the Davis Tax Committee, the establishment of an advance pricing agreement (“APA”) programme has been a key aspect of SARS’s strategic objective of providing clarity and certainty for taxpayers of their obligations. The establishment of an APA programme has, accordingly, been taken up in SARS’s annual performance plans and will also support SARS’s other strategic objectives such as making it easy for taxpayers to comply, while building public trust and confidence in the tax administration system.

A draft public discussion paper on the introduction of an APA programme was released for public comment towards the end of 2020. Although responses were limited, on the whole the discussion paper was met with support for the introduction of an APA programme. Constructive comments and suggestions were submitted, which have been incorporated into the development of the APA model.

A document seeking to provide a high-level model and draft legislative framework for an APA unit and associated processes at SARS and the introduction of an APA programme in South Africa has subsequently been issued by SARS for public comment.

A copy of the document can be accessed here.

Comments may be submitted by close of business on 31 January 2022 to acollins@sars.gov.za.

14/01/2022