A new binding general ruling (BGR) from the South African Revenue Service (SARS) has set out further requirements for what vendors and businesses at large need to provide the tax authority to substantiate tax deductions.
Consultancy firm PwC, in a recent report, highlighted the new BGR. According to PwC, BGR 63 specifically covers tax deductions made on a non-taxable supply of goods repossessed or surrendered under an instalment credit agreement (ICA).
An instalment credit agreement in South Africa is a loan agreement where the borrower repays the loan amount in regular, predetermined payments over a set period of time, including interest. Click here to read full article