The South African Revenue Services (SARS) has published an updated Guide on the Taxation of Franchisors and Franchisees (Issue 2), which is dated 16 August 2021. The aim of the guide is to assist in clarifying uncertainties that may arise on the application of the income tax laws to a franchise arrangement, with a focus mainly on transactions between franchisors and franchisees that are resident in South Africa. The guide covers general principles, creation or acquisition of IP, upfront fees, royalty payments, withholding tax on royalties, and other related matters.