The 2024 Tax season in South Africa is underway, here are the dates:
Auto-assessment notices:
From 1 July 2024 to 14 July 2024, SARS will issue auto-assessments to taxpayers with less complicated tax affairs.
Individual taxpayers (non-provisional):
You can file your tax return from 15 July 2024 to 21 October 2024.
Provisional taxpayers:
The filing season for provisional taxpayers runs from 15 July 2024 to 20 January 2025.
Trusts:
Trusts have a filing period from 16 September 2024 to 20 January 2025.
Effective compliance practices play a vital role in identifying, assessing, and mitigating risks. They safeguard organisations against financial losses, legal liabilities, and reputational damage. Regulatory compliance is a critical aspect of conducting business in South Africa.
Tax compliance for businesses in South Africa:
Tax Compliance:
Businesses must register with the South African Revenue Service (SARS) and adhere to tax regulations.
Value-Added Tax (VAT) registration and timely submission are essential for eligible businesses.
Remember that compliance requirements may vary based on the industry and business size. Staying informed and adapting to changes is crucial for effective compliance.
Neglecting Tax Obligations:
Missing tax deadlines or underreporting income can result in penalties.
Regularly submitting accurate tax returns and promptly paying taxes is essential.
Employer Responsibilities Regarding Employees’ Tax Compliance:
Deducting Employees’ Tax (PAYE):
Employers must deduct PAYE from employees’ remuneration and remit it to SARS monthly.
Ensuring accurate calculations and timely submissions is critical.
Issuing IRP5/IT3(a) Certificates:
Employers should provide employees with IRP5/IT3(a) certificates at the end of each tax year.
These certificates summarize income, deductions, and tax withheld.
Assisting with Tax Directives:
Employers can apply for tax directives from SARS to address specific situations (e.g., foreign remuneration exemptions).
Reconciliation and Declarations:
Submit an EMP501 reconciliation detailing total PAYE, SDL, UIF, and Employment Tax Incentive (ETI) deductions.
Provide details of IRP5/IT3(a) certificates issued during the tax year.
What is an IRP5/IT3(a) certificates:
IRP5/IT3(a) certificate is an essential document that reflects various aspects of an employee’s tax-related information.
The purpose of the certificate serve as an employee tax certificate. It discloses the following details for a specific tax year:
Remuneration earned during employment.
Certain allowable deductions.
Employees’ tax (PAYE) deducted or withheld.
Employers must issue an IRP5/IT3(a) to employees where remuneration has been paid or has become payable. It provides a comprehensive summary of the employee’s tax-related transactions during the year.
Differences Between IRP5 and IT3(a):
An IRP5 reflects both remuneration and the tax deducted.
An IT3(a) does not show a tax deduction but instead includes a reason code if no PAYE was deducted.
Clear communication, accurate record-keeping, and compliance with tax regulations benefit both employers and employees. It is the Employee's responsibility to ensure that their tax returns are submitted timeously and accurately.
