Globally Tax Authorities are placing a significant focus on Base Erosion and Profit Shifting (BEPS), with transfer pricing being one of the key areas of focus. The South African Revenue Service (SARS) being no exception. We have also recently seen the first South African court case on a transfer pricing dispute.

It is therefore essential for all businesses transacting cross-border to stay up to date on the latest developments in the transfer pricing landscape. This webinar has been designed to create awareness and to keep you informed so that you can plan accordingly and manage and mitigate the potential tax risks.

Outline of the webinar:

  1. Tax Court case on transfer pricing

On 14 February 2024, the tax court in Johannesburg delivered South Africa’s first judgment on a transfer pricing dispute. This has been long anticipated given the major transfer pricing disputes between SARS and taxpayers in recent years.

During this session we will unpack the facts of the case, the arguments made for SARS and the taxpayer, the court’s decision and our observations.  

  1. Associated Enterprises

With effect from tax years commencing on or after 1 January 2023, the ambit of section 31 of the Income Tax Act, dealing with transfer pricing, has been widened to include cross-border transactions between taxpayers and “associated enterprises” (in addition to “connected persons”). SARS issued Interpretation Note 128 to provide guidance on the interpretation of the definition of “associated enterprise”.

During this session we will cover the essential aspects of the meaning of an “associated enterprise” that taxpayers have to bear in mind in determining whether the South African transfer pricing regulations may apply to a cross-border transaction.

  1. Advance Pricing Agreements (APA’s)

An Advance Pricing Agreement (APA) is a procedural agreement between one or more taxpayers and one or more tax authorities that aims to achieve advance tax certainty and avoid costly transfer pricing disputes. With the promulgation of the Tax Administration Laws Amendment Act, 18 of 2023, on 22 December, South Africa now has a legislative framework for Advance Pricing Agreements.  SARS will still specify the detailed procedures and guidelines for the implementation and operation of the APA system by public notice.

During this session, we will provide a high-level update on the APA legislative framework.


  1. Financial Assistance

On 17 January 2023 SARS published Interpretation Note 127 that provides guidance on the pricing of inbound intra-group loans and on analysing a taxpayer’s debt capacity to ensure that it is not thinly capitalised. This is increasingly an area of focus for SARS. During this session we will provide a refresher on what is required from taxpayers with regards to cross-border lending transactions with related parties.

  1. Global Anti-Base Erosion Rules (Pillar Two) – Transfer pricing considerations

Following the release of the Draft Global Minimum Tax Bill and the Draft Global Minimum Tax Administration Bill, with a proposed effective date of 1 January 2024, in South Africa, this session will provide a high-level overview of the transfer pricing related aspects of Pillar 2 to consider.

CPD - 2 hours