South Africa’s tax system is complex, and taxpayers often require clarity on how SARS interprets and applies legislation.
To promote consistency and reduce uncertainty, SARS regularly issues Interpretation Notes and Binding Rulings.
Interpretation Notes have been part of SARS’s administrative practice for many years and are regularly updated as tax laws and policies evolve.
Binding Rulings were formally introduced through the Tax Administration Act (TAA) to give taxpayers legal certainty in advance about SARS’s treatment of specific transactions or classes of taxpayers.
Both tools are designed to improve understanding of the application, maintain compliance, reduce disputes, and provide transparency in SARS’s approach to tax administration.