Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

October 16, 2020
2020-6337

South Africa issues new regulations to implement the Common Reporting Standard

The Organisation for Economic Co-Operation and Development (OECD) developed the Standard for the Automatic Exchange of Financial Account Information in Tax Matters. The Standard encompasses the Common Reporting Standard (CRS).

Reporting Financial Institutions in participating jurisdictions are required to determine and report on financial account information of foreign tax residents to the financial institutions’ local Tax Authority. Such information is then automatically exchanged annually between jurisdictions where there is a treaty and a basis for such exchange (or retained by the local Tax Authority in the absence of a legal basis for exchange).

On 9 October 2020, the South African Minister of Finance, Tito Mboweni, gazetted new regulations (reflecting changes to the CRS) required to enable South Africa to comply with its treaty obligations. These new regulations will repeal the 2 March 2016 regulations (that gives effect to the CRS in South Africa).

The new regulations are expected to come into effect from 1 June 2021.

The regulations contain 11 sections that address the following matters:

  1. General Reporting Requirements
  2. General Due Diligence Requirements
  3. Due Diligence for Pre-existing Individual Accounts
  4. Due Diligence for New Individual Accounts
  5. Due Diligence for Pre-existing Entity Accounts
  6. Due Diligence for New Entity Accounts
  7. Special Due Diligence Rules
  8. Defined Terms
  9. Complementary Reporting and Due Diligence Rules for Financial Account Information
  10. Effective Implementation
  11. Mandatory Disclosure Rules

Paragraph B of Section XI (Mandatory Disclosure Rules), inter alia, gives effect to an intermediary’s obligation to disclose a CRS Avoidance Arrangement or Opaque Offshore Structures to the South African Revenue Service and will come into effect on 1 March 2023.

__________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services (Pty) Ltd., Johannesburg
Ernst & Young Advisory Services (Pty) Ltd., Cape Town
Ernst & Young Advisory Services (Pty) Ltd., Durban
Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
Ernst & Young LLP (United States), Pan African Tax Desk, New York

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more