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South African Revenue Service publishes list of non-QCAA jurisdictions

Executive summary

On 29 December 2017, the South African Revenue Service (SARS) released an updated list of jurisdictions with which South Africa does not have a Qualifying Competent Authority Agreement (QCAA) in effect by the time the Country-by-Country (CbC) report must be filed (note that first filings are due 28 February 2018).

This means that South African taxpayers forming part of a foreign Multinational Enterprise (MNE) group may be required to file a CbC report with SARS, even though the Ultimate Parent Entity (UPE) is resident in a country other than South Africa, for example the United Arab Emirates or China.

Detailed discussion

In terms of Article 2(2) of the regulations specifying the changes to the CbC Reporting Standard for MNEs, published in Government Gazette No. 40516 of 23 December 2016 (CbC regulations), a member of an MNE Group resident in South Africa that is not the UPE of that MNE Group may be required to file a CbC report with SARS under the three sets of circumstances outlined below.

  • Absence of an obligation for the UPE of an MNE group to file a CbC report in its jurisdiction of tax residence.
  • Cases where the jurisdiction in which the UPE of the MNE Group is tax resident has an International Agreement in place with South Africa but does not have a QCAA in effect by the time the CbC report must be filed (the focus of this Alert).
  • Cases where there has been a systemic failure of the jurisdiction in which the UPE of the MNE group is tax resident. SARS was not aware of any such failures at the time of publication.

The list of jurisdictions as of 29 December 2017 with which South Africa has an International Agreement but no QCAA in place are:

Country

Country

Country

Albania

Ghana

Qatar

Algeria

Gibraltar

Romania

Andorra

Greenland

Rwanda

Anguilla

Grenada

Saint Kitts and Nevis

Aruba

Guatemala

Saint Lucia

Azerbaijan

Iran

Saint Vincent and the Grenadines

Barbados

Israel

Samoa

Belarus

Kazakhstan

San Marino

Belize

Kenya

Saudi Arabia

Botswana

Lebanon

Senegal

British Virgin Islands

Lesotho

Seychelles

Bulgaria

Marshall Islands

Sint Maarten

Cameroon

Moldova

Swaziland

Chile†

Monaco

Tanzania

China

Montserrat

Tunisia

Cook Islands

Mozambique

Turkey

Costa Rica

Namibia

Turks & Caicos Islands

Curacao

Nauru

Uganda

Democratic Republic of Congo

Nigeria

Ukraine

Egypt

Niue

United Arab Emirates

Ethiopia

Oman

Uruguay†

Faroe Islands

Pakistan

Zimbabwe

Georgia

Panama

 

* Only for Reporting Fiscal Years commencing before 1 January 2017.

Taxpayers should thus ensure that they are aware of their CbC reporting requirements and timelines in South Africa since it may extend beyond filing a Local File.

EYG no. 00121-181Gbl

Download this Tax Alert as a PDF file

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