| 1. | Each Ultimate Parent Entity of an MNE Group that is resident for tax purposes in South Africa must file a Country-by-Country Report conforming to the requirements of Article 4 with the South African Revenue Service ("SARS") with respect to its Reporting Fiscal Year on or before the date specified in Article 5. |
| 2. | A Constituent Entity which is not the Ultimate Parent Entity of an MNE Group must file a Country-by-Country Report conforming to the requirements of Article 4 with SARS with respect to the Reporting Fiscal Year of an MNE Group of which it is a Constituent Entity, on or before the date specified in Article 5, if the following criteria are satisfied: |
| (i) | the entity is resident for tax purposes in South Africa; and |
| (ii) | one of the following conditions applies: |
| (a) | the Ultimate Parent Entity of the MNE Group is not obligated to file a Country-by-Country Report in its jurisdiction of tax residence; or |
| (b) | the jurisdiction in which the Ultimate Parent Entity is resident for tax purposes has a current International Agreement to which South Africa is a party but does not have a Qualifying Competent Authority Agreement in effect to which South Africa is a party by the time specified in Article 5 for filing the Country-by-Country Report for the Reporting Fiscal Year; or |
| (c) | there has been a Systemic Failure of the jurisdiction of tax residence of the Ultimate Parent Entity that has been notified by SARS to the Constituent Entity resident for tax purposes in South Africa. |
Where there are more than one Constituent Entities of the same MNE Group South Africa and one or more of the conditions set out in subsection (ii) above apply, the MNE Group may designate one of such Constituent Entities to file the Country-by-Country Report conforming to the requirements of Article 4 with SARS with respect to any Reporting Fiscal Year on or before the date specified in Article 5 and to notify SARS that the filing is intended to satisfy the filing requirement of all the Constituent Entities of such MNE Group that are resident for tax purposes in South Africa.
| 3. | Notwithstanding the provisions of paragraph 2 of Article 2, when one or more of the conditions set out in subsection (ii) of paragraph 2 of Article 2 apply, an entity described in paragraph 2 of Article 2 is not required to file a Country-by-Country Report with SARS with respect to any Reporting Fiscal Year if: |
| (i) | the MNE Group of which it is a Constituent Entity has made available a Country-by-Country Report conforming to the requirements of Article 4 with respect to such Fiscal Year through a Surrogate Parent Entity that files that Country-by-Country Report with the tax authority of its jurisdiction of tax residence on or before the date specified in Article 5; and |
| (ii) | the following conditions are satisfied: |
| (a) | the jurisdiction of tax residence of the Surrogate Parent Entity requires filing of Country-by-Country Reports conforming to the requirements of Article 4; |
| (b) | the jurisdiction of tax residence of the Surrogate Parent Entity has a Qualifying Competent Authority Agreement in effect to which South Africa is a party by the time specified in Article 5 for filing the Country-by-Country Report for the Reporting Fiscal Year; |
| (c) | the jurisdiction of tax residence of the Surrogate Parent Entity has not notified SARS of a Systemic Failure; |
| (d) | the jurisdiction of tax residence of the Surrogate Parent Entity has been notified in accordance with paragraph 1 of Article 3 by the Constituent Entity resident for tax purposes in its jurisdiction that it is the Surrogate Parent Entity; and |
| (e) | a notification has been provided to SARS in accordance with paragraph 2 of Article 3. |
| 4. | SARS must publish a list of jurisdictions contemplated in item (b) of subsection (ii) of paragraph 2 of Article 2 and may fulfil its obligation under item (c) of that subsection by publishing a list of jurisdictions contemplated in that item. |
