“country of residence” is the country in which a person is considered to be a resident, after the application of an agreement for the avoidance of double taxation;
Author: admin_kmos
“Competent authority” definition of section 76A of ITA
“competent authority” is an official in a country who is authorised by the government of the country to administer an agreement for the avoidance of double taxation that the Republic is a party to, and includes a person duly delegated by that official to perform the role;
“Arm’s length transfer price” definition of section 76A of ITA
“arm’s length transfer price” means a transfer price in an affected transaction that would have been the transfer price if the affected parties had been independent persons dealing at arm’s length with each other;
“Arm’s length allocation” definition of section 76A of ITA
“arm’s length allocation” means an allocation of the profit in an affected transaction that would have been the allocation of the profit if the affected parties had been independent persons dealing at arm’s length with each other;
“Agreement for the avoidance of double taxation” definition of section 76A of ITA
“agreement for the avoidance of double taxation” means an agreement under section 108 that contains Articles that are the same as, or similar to, Article 9(2) and Article 25(3), as amended from time to time, of the Model Tax Convention on Income and on Capital of the Organisation for Economic Co-operation and Development;
“Advance pricing agreement” definition of section 76A of ITA
“advance pricing agreement” means-
(a) a DTA advance pricing agreement; and
(b) a unilateral advance pricing agreement;
Section 76A (ITA) – Definitions
PART IA
Advance Pricing Agreements
76A Definitions
In this Part, unless the context otherwise indicates-
Section 76D (ITA) – Fees for advance pricing agreements
76D Fees for advance pricing agreements
(1) In order to defray the costs of administering the advance pricing agreement system, the Commissioner may, by public notice, prescribe fees payable by an applicant, including-
(a) a pre-application consultation fee;
(b) an application fee;
(c) a cost recovery fee for processing an advance pricing agreement application; and
(d) fees associated with the maintenance or extension of an existing agreement.
(2) An applicant must pay the fees in subsection (1) based on an invoice issued by SARS.
(3) SARS may retain the fees referred to in subsection (1), or a portion thereof, if it rejects an advance pricing agreement application or terminates the agreement.
(4) The fees imposed under this section constitute fees imposed by SARS in terms of section 5(1)(h) of the SARS Act and constitute funds of SARS within the meaning of section 24 of that Act.
[Section 76D inserted by section 10 of Act 18 of 2023]
Section 76F (ITA) – Application for advance pricing agreement
76F Application for advance pricing agreement
(1) A prospective applicant may submit an advance pricing agreement application after receiving notification from the Commissioner under section 76E(4).
(2) If there is more than one applicant in respect of an advance pricing agreement, the applicants must join their applications into a joint application and designate one representative for the applicants.
(3) An advance pricing agreement application must be made in the prescribed form and manner.
(4) After considering an application for a DTA advance pricing agreement, the competent authority of the Republic must enter into discussions with the competent authority of the other country, which will be party to an affected transaction, on the feasibility of entering into the agreement with the applicant.
[Section 76F inserted by section 10 of Act 18 of 2023]
Section 76G (ITA) – Amendments to advance pricing agreement application
76G Amendments to advance pricing agreement application
(1) An applicant may make a written request to the Commissioner for an amendment to an advance pricing agreement application submitted to the Commissioner.
(2) The Commissioner may allow the amendment to the advance pricing agreement application if the amendment does not have the effect of materially altering the nature of the application that was originally submitted.
(3) The amendment will be considered only if the applicant agrees to, and pays, an additional cost recovery fee in terms of section 76D(1)(c) that is invoiced in terms of section 76D(2).
[Section 76G inserted by section 10 of Act 18 of 2023]