What are Advanced Tax Rulings (ATRs)?
Taxpayers who require clarity and certainty on the Commissioner's interpretation and application of the tax laws can obtain a binding private ruling or binding class ruling from the South African Revenue Service. The ruling will generally be binding on the Commissioner when the proposed transaction is assessed provided all relevant facts have been fully and accurately disclosed.
Publication of ATRs
All Binding General Rulings, Binding Private Rulings and Binding Class Rulings are published in edited form. They are published on the SARS website, www.sars.gov.za (the link is on the left hand side of the Home Page under Quick Contacts).
The ATR's are published as general information and a third party may not rely upon or cite a Binding Private Ruling or Binding Class Ruling in any proceedings before the Commissioner.
Applying for an ATR
As a subscriber you are welcome to contact us should you require assistance in applying for an ATR.
BPR 023 - 9 February 2009
This binding private ruling focused on the VAT implications of a property owning company acquiring vacant land for the purposes of establishing a residential township. Against the backdrop of a complex transaction involving various parties a ruling was sought on inter alia the definitions of "enterprise" and "input tax" as well as exempt educational services and change in use adjustments.
BPR 024 - 10 February 2009
This binding private ruling applied to a share-for-share transaction under the repealed section 43 of the Income Tax Act, 1962. Share-for-share relief was denied on the basis that the acquiring company would not have the required interest in the target company as the target company would not be a "listed company" as defined in section 41, on the disposal date.
BPR 025 - 19 February 2009
This binding private ruling dealt with an asset-for-share transaction under section 42 of the Income Tax Act, 1962. The applicant wished to utilise the provision of section 42 in order to transfer an existing division to a newly formed wholly owned subsidiary. The replacement of a divisional loan with third party debt from banks, qualified as an amount of debt attributable to and which arose in the normal course of a business undertaking for purposes of section 42(8)(b).
BPR 026 - 19 February 2009
The various VAT implications on the sale of land subject to a lease agreement formed the basis of this private binding ruling including the acquisition of subdivided land for no consideration from a connected person and acquiring a portion of a business otherwise than for the purpose of making taxable supplies.
BPR 027 - 6 March 2009
An amalgamation transaction under section 44 of the Income Tax Act, 1962 was approved, including a confirmation of the value-added tax, stamp duty and transfer duty roll over provisions. The transaction described in the binding private ruling involved the amalgamation of various wholly owned South African subsidiaries of a foreign holding company.
BPR 028 - 8 April 2009
The applicant in this binding private ruling obtained approval for the deduction of certain periodic expenditure payable in terms of hybrid-debt instruments issued which were subject to conditions outlined in Regulation 38(13) applicable to banks.
BCR 001 - 6 March 2009
This binding class ruling dealt with the concepts of "equity instrument" and "restricted equity instrument" for purposes of section 8C of the Income Tax Act, 1962 and the application thereof under an employee share incentive scheme.
Ruaan van Eeden