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Customs and Excise Act Rules Amended

June 9, 2020

South African Revenue Service

Customs and Excise Act Rules have been amended.

The South African Revenue Service published the amendments in Government Gazette 43399.

Rule 19A.01(b)(i)(bb) is amended by the addition of items 104.21 and 104.23.

Rule 19A3.04(d)(viii)(bb) is also amended by the insertion of item 621.16 of schedule 6.

Item 621.16 refers to “spirits entered or deemed to have been entered for home consumption and payment of duty as contemplated in section 19A and its rules which have been exported by the licensee of a manufacturing warehouse (VMS) from stocks owned and stored by such licensee on premises outside such warehouse, subject to compliance with Note 8 to this Section”.

A new Rule 32.01 is also inserted setting out how the alcoholic strength by volume of any spirits or spirituous preparation imported into or manufactured in South Africa is to be determined.

Methods include a gas chromatograph; near infrared spectrometer; distillation followed by the gravimetric measurement of the distillate or by measurement in a density meter and an alcohol hydrometer and the measurement tables in volume 2 of the “Practical Alcohol Tables”.
Rule 36.01(e) is also inserted that includes beer within the scope of Rule 32.01.

In Gazette 43398, national treasury announced that all funds from the Municipal Disaster Relief Grant have been converted to the Provincial Disaster Relief Grant for the 2019/20 financial year.

The conversion was made in terms of the 2019 Division of Revenue Amendment Act.

In Notice 636, treasury republished the notice in respect of the method or formula for determining the amount for purposes of paragraph (b) of the definition of living annuity in section 1(1) of the Income Tax Act.

The Notice was first published in Gazette 43379 on 1 June 2020.

It stipulates that living annuitants will be able to change their annuity drawdowns to an amount that is not less than 0.5% and not greater than 20% of the value of the annuity assets.

The changes to the drawdown percentage on living annuities can occur from 1 June to 30 September 2020 irrespective of the contract anniversary date.

Treasury also indicates that annuitants can opt for a different draw down percentage at the anniversary date if that date falls within the relief period.

Any election made during the relief period will cease at the end of October and draw down rates will revert to rates applicable before the adjustment.