May 8, 2026
South Africa - SARS Releases Draft Framework for Bilateral APA Pilot Program
Summary
The South African Revenue Service (SARS) on April 30, 2026, released draft notices and an explanatory note setting out the proposed administrative framework for bilateral advance pricing agreements (APAs) under South Africa’s double taxation agreement (DTA) network. The draft framework addresses taxpayer eligibility, application fees, rejection criteria, processing requirements, and operational procedures for the DTA APA system.
Key points
Scope and Nature of the Draft DTA APA Framework
The draft notices were issued under sections 76C, 76D, 76I(b), 76J(1), 76J(3), and 76P of the Income Tax Act, 1962.
The explanatory note states that the draft notices address:
persons eligible to apply for a DTA APA;
fees payable by applicants;
additional requirements that may result in rejection of an application;
requirements for processing an application;
information required in a preliminary DTA APA; and
procedures and guidelines for implementation and operation of the DTA APA system.
The comment deadline for the draft documents is May 29, 2026.
Eligibility Requirements
The draft notice issued under section 76C prescribes the persons eligible to apply for a DTA APA.
The draft framework provides that eligibility is limited to taxpayers meeting specified turnover thresholds and qualifying categories of cross-border controlled transactions.
The draft notice includes a turnover threshold of ZAR 50 billion for the preceding year of assessment.
Application Fees
The draft notice issued under section 76D prescribes fees payable in connection with a DTA APA application.
The draft framework includes:
a pre-application fee of ZAR 100,000;
an application fee of ZAR 1,000,000; and
an annual fee of ZAR 100,000.
Rejection Criteria, Processing Requirements, and Operational Procedures
The draft notice issued under section 76I(b) prescribes additional requirements that may result in rejection of a DTA APA application.
The draft notice issued under section 76J(1) sets out requirements for processing DTA APA applications.
A separate draft notice issued under section 76J(3) prescribes information required to be included in a preliminary DTA APA.
The draft notice issued under section 76P establishes procedures and guidelines for implementation and operation of the DTA APA system.
Source
South African Revenue Service, Legal Counsel – Preparation of Legislation – Draft Documents for Public Comment (April 30, 2026)
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Disclaimer:
This content is for general informational purposes only and does not constitute professional advice.
Information provided herein is based on publicly available sources as of the publication date and may be subject to change.
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