76K      Finalisation of advance pricing agreement

(1)     If an applicant accepts the preliminary advance pricing agreement in terms of section 76J(4) or 76J(7), the applicant must sign the agreement and return it to the Commissioner.

(2)     At least two SARS officials delegated to do so, one of whom is the competent authority of the Republic in the case of a DTA advance pricing agreement, must sign the preliminary advance pricing agreement once subsection (1) has been complied with.

(3)     Once subsection (2) has been complied with, the Commissioner must send the advance pricing agreement to the applicant and, in the case of a DTA advance pricing agreement, also to the competent authority of the other country referred to in section 76J(5).

(4)     An advance pricing agreement will come into effect once subsections (1), (2) and (3) have been complied with.

(5)     The advance pricing agreement is applicable for up to a maximum of five consecutive years of assessment, commencing on the day after the end of the year of assessment in which the associated advance pricing agreement application is received by the Commissioner.

(6)     Based on a specific request by the applicant in an advance pricing agreement application, the Commissioner may allow the associated advance pricing agreement to be applicable for up to a maximum of three consecutive years of assessment, ending on the last day of the year of assessment in which the advance pricing agreement application is received by the Commissioner: Provided that the advance pricing agreement will not result in a cumulative decrease in taxable income or increase in assessed loss for the years of assessment.

(7)     The total duration in subsection (6) will be in addition to the total duration in subsection (5).

[Section 76K inserted by section 10 of Act 18 of 2023]