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Fiscal Restrictions

SOUTH AFRICA

Since 2011

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Broad-Based Black Economic Empowerment (B-BBEE) Act
Preferential procurement regulations provide for a preference point system whereby tenderers that have a higher Broad-Based Black Economic Empowerment (B-BBEE) status level (i.e. that score better in terms of black economic empowerment) enjoy progressive procurement preferences.
Coverage Horizontal
Sources
Fiscal Restrictions

SOUTH AFRICA

Since 2011

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Local Procurement Accord of 2011

Industrial Policy Action Plan
The National Treasury introduced new national preferential procurement regulations for public entities in 2011. The 2011 Local Procurement Accord commits the government to significantly expand the value of goods and services it procures from South Africa suppliers. The agreement included an “aspirational target” of sourcing 75% of government procurement locally to boost industrialization and job creation.

The regulations stipulate minimum local content thresholds in key sectors, in line with the government's Industrial Policy Action Plan. The level of local content for the designated sectors varies between 35% and 100% and is determined on a product-specific basis.

Early in April 2014, the South African Department for Trade and Industry (DTI) published its annual update to the Industrial Policy Action Plan, containing numerous pledges to strengthen localization of products and sectors. For example, in the electronics industry, public procurement will be leveraged in support of localization.
Coverage Certain sectors, including the electronics industry
Sources
Fiscal Restrictions

SOUTH AFRICA

Since 2011

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Local Procurement Accord of 2011
In the case of designated sectors where local production and content is deemed “of critical importance”, the tendering procedure must be restricted to locally produced goods, services or works only. As of April 2014, these designated sectors include set-top boxes for digital TV and telecom cables.
Coverage Set-top boxes for TV digital and telecom cables
Sources
Fiscal Restrictions

SOUTH AFRICA

Proposed in 2015

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Electronic Services Regulations
In the 2015 National Budget Speech, it was announced that the electronic services provisions would be amended to include the supply of software within its scope. This announcement signals a departure from the strict focus on business to consumer operations and the first steps towards the taxation of online services which are provided in business to business operations.
Coverage Software
Fiscal Restrictions

SOUTH AFRICA

Since April 2014

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Electronic Services Regulations
In South Africa, foreign e-commerce suppliers and foreign businesses supplying eBooks, music and other digital services (e.g. apps, digital books, online memberships, gaming online, streaming movies, music downloads) are required to register as Value Added Tax (VAT) vendors for business to consumer operations.

Moreover, the VAT registration threshold for foreign companies (taxable yearly turnover exceeding ZAR 50,000 (approx. USD 3,500)) is lower than that for domestic companies (ZAR 1 million (approx. USD 100,000)).
Coverage Foreign e-commerce suppliers and foreign businesses supplying eBooks, music and other digital services
Fiscal Restrictions

SOUTH AFRICA

Since 2000, last extension: 08/04/2011

Chapter Tariffs and Trade Defence  |  Sub-chapter Antidumping, CVD & Safeguards
Antidumping measure
The rate of the duty is 65.47%.
Coverage Product: Paper insulated lead covered electric cable (HS Code 8544.60); Country/Company: India
Sources
Fiscal Restrictions

SOUTH AFRICA

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
1.83%
Weighted average MFN rate
1.31%
Maximum tariff rate
25%
Coverage rate of zero-tariffs
75.44%

Coverage: Digital goods
Sources