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How to Get A Tax Compliance Status Pin in South Africa

Filed in SARS by on 03/26/2023 • 0 Comments
How to Get A Tax Compliance Status Pin in South Africa

How to Get A Tax Compliance Status Pin in South Africa, How to Obtain a South African Tax Compliance Status Pin, In South Africa, How to Obtain a Tax Compliance Status Pin

How to Get A Tax Compliance Status Pin in South Africa

 

One number says that about 25% of people who pay income tax pay more than 80% of all the income tax that is collected.

This number shows why there is a gap between the number of taxpayers who are registered (22.2 million) and the number who actually file tax returns (6.3 million).

This article tells you everything you need to know about how to get a tax clearance certificate pin.

What is a pin for Tax Compliance Status?

A Tax Compliance Status PIN is a unique number that a taxpayer is given to confirm that they are a taxpayer and to find out how their taxes are going.

The tax compliance status PIN is a way to let third parties see your tax compliance status online through the eFiling system. This is done electronically.

Once your personal PIN has been given to a third party, like a registered tax services practitioner or a government department, it can be used.

With the PIN, they can use SARS’s online eFiling portal to check on the status of your tax compliance.

When a third party uses your PIN, they will see the status of your compliance from your personal account as it is at the time of viewing, not as it was when you got your PIN from SARS.

This makes sure that the information that third parties get from your PIN is always correct and can be used for any tax purposes they want.

The tax compliance status PIN only tells third parties what your compliance status is, so that taxpayers can stay safe and remain anonymous.

 

SARS

 

How do I get a Tax Compliance Status PIN?

SARS has Tax Compliance Status Pins for four types of tax-related activities: a letter of good standing, a tender certificate, FIA (Foreign Investment Allowance) for individuals, and emigration.

This makes it possible for tax professionals and government departments outside of the government to access and check the status of the four types of certificates online.

Before 2016, the TCS system was called the Tax Clearance Certificate. In 2016, SARS completely revamped it and launched a new online system that fully automated the process of tax compliance.

Make sure you are registered with the SARS eFiling system before you can get a Tax Compliance Status PIN.

To successfully sign up for the TCS system, you must also make sure that your profile only has one tax type turned on.

If you are registered for more than one type of tax, make sure to use the “Merge Entities” function on your home screen to see a compliance profile for all taxes.

Once you have signed up for the eFiling portal, you will be able to activate your Tax Compliance Status.

When you’re done, the “My Compliance Profile” will appear on your home screen.

When you click on “My Compliance Profile,” your compliance status will be shown based on whether or not you still owe money to SARS.

Your registration status, whether or not you’ve sent in all of your tax returns, and whether or not SARS has all the necessary supporting documents.

  • A color-coded profile will show you if your account is tax-compliant or not. Green means that your account is tax-compliant, and red means that it is not.
  • If your account profile is green, you can go ahead and get your PIN.
  • Just click on “My Compliance Profile,” and then click on “Tax Compliance Status Request” after that.
  • Choose the type of TCS you want to apply for, such as “Good Standing,” “Tender,” “Foreign Investment Allowance,” or “Emigration.”
  • Complete the process and send it to SARS. You should get your PIN right away via SMS or email.

 

 

To get a tax clearance pin, how long does it take?

SARS says that it can take anywhere from 24 hours to several weeks for your Tax Compliance Status to send you a PIN.

As your TCS is updated in real time, you can only get a TCS PIN if you have a good tax record with the revenue service.

One’s compliance status is determined by how well they do at SARS in the following areas:

These include your registration status, whether or not you’ve sent in your tax returns, how much you owe SARS, and all the relevant documents you’ve sent to SARS through their many channels.

From the dashboard of your personal account on the eFiling portal, you can see a color-coded profile that shows if you have tax problems or not.

Green means that you are doing everything right with your taxes, and as long as your profile stays green, your TCS PIN will still work.

But if your profile suddenly turns red, your PIN will stop working and won’t work again until you fix whatever mistake is making your tax status be in areas with SARS.

 

Can you get a certificate of tax clearance online?

Since 2016, the Tax Compliance Status has been used instead of the Tax Clearance Certificate.

With the new Tax Compliance Status, the paper tax certificate has been replaced by a system that lets you get a TCS PIN in real time.

As a taxpayer registered with SARS, your tax status is automatically updated online and is either good (green) or bad (red) depending on whether you are registered for all required tax types.

You sent in all your tax returns on time and if you owe SARS any money.

 

 

SASSA

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How to Register With SARS as a taxpayer in South Africa

Filed in SARS by on 03/14/2023 • 0 Comments
How to Register With SARS as a taxpayer in South Africa

How to Register With SARS as a taxpayer in South Africa

How to Register With SARS as a taxpayer in South Africa

 

South African taxpayers can quickly file their income and other taxes online through the program known as eFiling by SARS.

We’ll go over how to register as a taxpayer with SARS in this article, along with some frequently asked questions about eFiling.

 

How can I become a taxpayer registered with SARS?

  1. Visit www.sars.gov.za to access the SARS eFiling webpage.
  2. Select “Register”
  3. Complete the registration form, then submit it.

You won’t get a tax reference number right away when you sign up for eFiling for the first time. A tax reference number will be automatically supplied to you after SARS verifies all of your information.

Those who are unable to register through eFiling may call the SARS Contact Center to make an appointment for eBooking with SARS. In order to finish the registration process, you will need to visit your local branch, for which a SARS representative will make an appointment on your behalf:

Evidence of Identity
Evidence of Address
Proof of Bank Information
What paperwork is required in order to register with SARS?
You will need to submit copies of the following supporting documents whether you register for taxes online or at a SARS branch.

Evidence of Identity:

Certified copies of a current identification card, such as a license, passport, temporary ID, or certificate for an asylum seeker, along with the original identification card
If the taxpayer is a minor, you must include a certified copy of the minor’s birth certificate as well as a copy of the parent or guardian’s identification card. The guardian is required to submit a death certificate if the parent has passed away.

 

 

  1. Proof of Address:

Here is a list of the forms of proof of address that SARS accepts. New users must ensure that the document clearly displays the taxpayer’s name and physical address.

​ Document ​Validity
1​ ​General Accounts ​
​1.1 ​Utility account e.g. water or electricity account ​Less than 3 months
​1.2 ​Educational Institution account ​Less than 3 months
​1.3 ​Co-op statement ​​Less than 3 months
​1.4 ​Medical aid statement ​​Less than 3 months
​1.5 ​Mortgage statement ​​Less than 6 months
​1.6 ​Telephone or mobile phone account ​​Less than 3 months
1.7​ ​e-Toll account ​Less than 3 months
​1.8 Television licence ​Less than 1 year
1.9 ​Retail store accounts ​Less than 3 months
​2 ​Government Issued Documents ​
​2.1 ​Motor vehicle licence ​Less than 1 year
​2.2 ​Court order ​​Less than 3 months
​2.3 ​Subpoena ​​Less than 3 months
​2.4 ​Traffic fine ​​Less than 3 months
​2.5 ​UIF or pension pay-out documentation ​​Less than 3 months
​3 ​Insurance and Investments ​
​3.1 ​Life assurance document ​​Less than 1 year
​3.2 ​Short-term insurance document ​​Less than 1 year
​3.3 ​Health insurance document ​​Less than 1 year
​3.4 ​Funeral policy document ​​Less than 1 year
​3.5 ​Investment statement from share, portfolio or unit trust ​​Less than 1 year
​4 ​Lease/ Franchise ​
​4.1 ​Current and valid agreement

 

Complete the Confirmation of Entity Residential/ Business Address Form if you are a new applicant (CRA01).

There are three different types of proofs that can be offered. Any one of these ought to be adequate.

a genuine letter from your bank attesting to the account holder’s name, account number, type, branch code, and the date the account was opened. This can’t be more than a month old (30 days)
a genuine bank statement that was generated in-person or online, is electronically stamped, is no older than three months, and contains the same data as the one above. A stamped, original letter on the bank’s letterhead that is no more than one month old will be accepted in the event that a bank statement cannot be presented because the account is new.
A marriage certificate will be required if the wife or husband want to use their spouse’s account even though they do not have a bank account of their own. Any other situation necessitates the submission of an affidavit.
You can finish registering for eFiling once you have registered and received a tax identification number.

What makes you a taxpaying individual?
Anyone who is required to pay taxes to a government is referred to as a “taxpayer.” There are various tax categories, and each has its own exemptions and regulations.

An individual taxpayer is a person who has been given a tax identification number and who is required to file a tax return with SARS and pay the applicable taxes. The most typical kind of individual taxation for workers in firms is Income Tax, which is due on your wage and varies depending on your overall earning bracket.

What income level is required to register with SARS?
Anyone who gets money other than a salary, advance, or allowance should sign up for provisional tax. In order to avoid accruing a big tax debt when completing your tax assessment, this way of paying the income tax burden in advance is not separate from income tax.

But there are some exceptions. In 2023, you won’t be required to file as a provisional taxpayer if:

You are less than 65 years old and make less than R91,250 annually.
You are between the ages of 65 and 75, earn less than R141,250, and
You are 75 years of age or older and earn less than R157,900.
How can I sign up for SARS for the first time online?
First-time There are three ways to register for SARS:

Auto Registration for Income Tax: After completing the SARS eFiling registration process, SARS will automatically register you and provide you a special tax identification number. the following steps:

  1. Visit www.sars.gov.za to access the SARS eFiling webpage.
  2. Then click “Register.”
  3. Complete the registration form, then submit it.
  4. Through your employer, register

Employers can submit employee income tax registrations to SARS on your behalf using the SARS registration function provided by the SARS eFiling system. Visit www.sars.gov.za for further information or inquire with your employer about their procedures.

Go to a SARS office.
You can go to a SARS branch if you’d rather get help in person. Note:

Before visiting the branch, you MUST schedule a time to do so.

Making an appointment is possible ONLY by calling the SARS Contact Center at 0800 00 7277 and choosing option 0. (zero). The appointment will be made on your behalf by a SARS consultant, who will also give you confirmation of the time and date of the booking.

SARS

Can I visit SARS without a reservation?

The straightforward response to this query is NO! There is no other way to schedule a visit to a branch but to:

If you are already a registered taxpayer, there are two other ways that you can make a booking: Call the SARS Contact Center at 0800 00 7277, and a SARS representative will make an appointment on your behalf.

Request an eBooking appointment by texting the word “Booking” (SPACE), ID, passport, or asylum seeker number in an SMS to SARS at (47277). Tax professionals cannot use this service, which is solely available for Personal Income Tax.

Before visiting the branch, make an appointment using the online eBooking form on eFiling. Make sure you possess all the necessary supporting documentation.

The length of the SARS verification process.

The information that the taxpayer submitted on the declaration or tax return may need to be verified. As it is necessary to ensure the appropriate administration of tax, including on a risk basis, SARS may choose any taxpayer for this reason.

If you are chosen, SARS will inform you in writing and give the deadline for submitting one of the following:

The requested files, data, forms, or a correction request (RFC). You only need to do this if you want to modify your first declaration.
Within 21 business days of the day you supply all necessary information, SARS will make an effort to inform you of the verification requirements pertaining to your return or declaration.

How to Submit EMP501 on SARS Efiling In South Africa

Filed in SARS by on 03/14/2023 • 0 Comments
How to Submit EMP501 on SARS Efiling In South Africa

How to Submit EMP501 on SARS Efiling In South Africa,How to File EMP501 Online for SARS in South Africa,How to File EMP501 Using SARS Electronic Filing in South Africa

How to Submit EMP501 on SARS Efiling In South Africa

 

Every employer must provide a complete Employer Interim Reconciliation Declaration (EMP501). The South African Revenue Service (SARS) eFiling platform can be used to accomplish this. How to file EMP501 on SARS eFiling is explained in this post.

 

 

How to File a SARS E-File for EMP501

 

For the first six months of the year, employers are required to reconcile every Monthly Employer Declaration (EMP201). Accurate payroll data, tax values of the created interim IRP5/IT3(a) certificates, and PAYE data are all included in the reconciliations. The EMP501 is then submitted.

Employers can submit the EMP501 using the free SARS program called e@syFileTM that is linked to eFiling. The software was created primarily to make it easier for taxpayers to manage their tax matters, including payroll administrators and employers.

The current version of e@syFileTM must first be downloaded and installed on the taxpayers’ computers. Because the installation process has the potential to wipe out existing data on your computer, it is crucial to make a backup of it. Additionally, you must confirm that the import file complies with the specifications.

The most recent version of e@syFileTM must always be used when submitting any information to SARS because other older versions will not be approved. Before attempting to submit your EMP501, you can visit the official eFiling website to get the most recent version of SARS program.

The following tasks can be carried out by taxpayers using the most recent version of e@syFileTM:

  • The Monthly Employer Declaration must be finished, revised, and submitted (EMP201)
  • The Employer Reconciliation Declaration must be finished, revised, and delivered (EMP 501)
  • Manage the employer account and third-party appointment management (AA88s)
  • Import tax certificates, record them with the EMP501 while offline, and then send them to SARS online.
  • To register employees, use the Income Tax Registration (ITREG) feature.
  • The EMP501 Work Page on Efiling isn’t there.

Next to the EMP501 details on eFiling is the EMP501 Work Page. Click “View” next to the View Certificate Errors option. By selecting “Refresh Historic Data,” you can update the EMP501 historical data on the work page to reflect the most recent SARS records.

For instance, if the issue of non-compliance is brought up when the EPM501 return is requested on eFiling, you can use the refresh button to change your compliance status. Any information you may have recorded on the return is overwritten if you choose to refresh.

 

When Should EMP501 Be Filled Out?

The goal of the South African Revenue Service (SARS) is to help people better manage their tax-related difficulties. As a result, it has made a number of adjustments to the tax system to make it less complicated. All employers are now required to submit their Employer Reconciliation Declaration (EMP501) to SARS twice a year using the most recent version of e@syFileTM.

The interim reconciliation declaration, which covers the first half of the tax year, which runs from 1 March to 31 August, is the initial submission. This needs to be turned in by October 31 at the latest.

The deadline for submitting the yearly reconciliation declaration, which covers the period from March 1 through February 28/29, is May 31. All taxpayers will receive notification from SARS when the Employer Filing Season officially begins so they will know when to submit their EMP501. On the SARS website, you may find the Employer Filing Season dates.

Employers must confirm all payment amounts when completing their Monthly Employer Declarations, including Pay-As-You-Earn (PAYE), Employment Tax Incentive (ETI), Skills Development Levy (SDL), and Unemployment Insurance Fund (UIF) (EMP201s).

 

What Distinguishes EMP201 from EMP501?

The Monthly Employer Declaration must be assembled and submitted by all employers (EMP201). You must submit these monthly Employer Declarations for the first six months prior to filing your EMP501. The Employee Interim Tax Certificates (IRP5/ IT3a’s), which contain information about payroll, PAYE, and tax values, should be accurate.

All employees’ wages are included in a report called the EMP501 reconciliation, which must then be submitted to SARS. An EMP501 must have details about the employees declared each month on the Employer Declarations for the previous six months (EMP201).

You must balance all payroll tax liabilities, including PAYE, UIF, and SDL, before submitting an EMP501. As an employer, you must accurately withhold and report the tax payments made by your employees from their compensation. The EMP501 is filed after six months, whereas the EMP201 is submitted every month. In other words, you have to carry out your EMP501 reconciliations twice a year.

All taxpayers will get notice from SARS of the deadlines for EMP501 submission. The submission is due on October 31st, with the interim period lasting six months between March 1 and August 31st. The deadline for the yearly or full tax year is May 31.

For a successful reconciliation status, your EMP501 declaration must contain accurate and current data. The mandatory fields shown here must be filled out for each employee before submitting your EMP501.

complete name and last name of the employee
Passport or identity number
Reference number for income taxes
employment date
Physical address for a home
Compensation information
a person’s bank information

 

 

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What Is the Cost of a Late EMP501 Submission?

Employers who submit the EMP501s after the deadline will be penalized administratively. For each late submission, the employer is assessed a fine equal to 1% of the year’s PAYE liability. Up until a point where it reaches 10% of the year’s PAYE liability, the penalty increases monthly by one percentage point.

You will commit an offense if you intentionally or recklessly fail to submit an EMP501 return to SARS. You face a fine or a sentence of roughly two years in prison if you are found guilty of the crime. Contact SARS as soon as possible if you need assistance filing your EMP201 or EMP501 due to difficulties you are experiencing.

Employers must use the most recent version of e@syFileTM linked to eFiling to submit their EMP501 to SARS. This software must first be downloaded and installed on your computer. Penalties may apply if your tax responsibilities are not met. To ensure that you are following SARS requirements, you must frequently visit its website to learn about the deadlines for submitting your EMP501.

 

 

Telecoms

 

What is the Difference Between SARS Audit And Verification in South Africa?

Filed in SARS by on 03/14/2023 • 0 Comments
What is the Difference Between SARS Audit And Verification in South Africa?

What is the Difference Between SARS Audit And Verification in South Africa?,Selected for SARS verification or audit

 

What is the Difference Between SARS Audit And Verification in South Africa?

 

To make filing tax returns easier and more convenient than ever, SARS has made significant improvements to both its online and offline infrastructure. The government gave SARS an extra R3 billion in 2021 to increase efficiency and effectiveness.

As part of their efforts, SARS is boosting specialized audits and examinations of return claims. Audits and investigations are necessary for SARS to identify to ensure that fraudulent claims are stamped out and taxpayers’ money is handled wisely.

What distinguishes SARS auditing from SARS verification?

Let’s examine these expressions and the associated procedures in more detail:

Verification of SARS
If a taxpayer has a verification status, SARS must check their actual financial and accounting records, as well as any other supporting papers, to verify the information they have reported on their return.

SARS wants to make sure that the declaration or return fairly and accurately depicts a taxpayer’s tax position, hence this verification is necessary.

Audit by SARS
To ascertain whether the taxpayer’s status has been accurately disclosed, the SARS audit extends beyond the verification. The audit will function as an examination of the taxpayer’s compliance with the requirements of the applicable tax legislation if the taxpayer made no declaration or did not file a return.

Verification is less thorough and intrusive than an audit, and the scope is typically larger.

 

 

After verification, how long does SARS take to issue a refund?

Transactions with SARS are now faster and easier than ever with to the advent of eFiling. If you are entitled to a refund following your final tax assessment, it will be automatically recorded and distributed to you. You won’t need to make a manual request.

An eFiling refund is processed within 48 to 72 hours (2 to 3 business days) of the day it was provided to you. There are some situations where it can take a little longer, but SARS will let you know if this is the case.

To reduce the likelihood of additional delays, it is imperative that all of your information with SARS, particularly your banking details, be as correct as possible.

 

What occurs if you get audited by SARS?

What to anticipate from the SARS audit procedure is as follows:

SARS Audit Methodology

  1. The procedure begins with the taxpayer receiving a formal Notification of Audit informing them of the audit’s scope and auditor.
  2. Following that, SARS will require the pertinent supporting documentation, which must be delivered to them within 21 business days.
  3. The needed documents can be delivered, picked up, or uploaded using eFiling.
  4. SARS has the right to ask for more details at any time. If the taxpayer does not give these, SARS will utilize the data obtained from outside sources.
  5. From the date of the Notification of Audit, progress reports must be released every 90 days.
  6. SARS strives to conclude each audit within 90 business days; however, an audit might take from 30 days to 12 months to conclude, depending on the complexity of the audit and the taxpayer’s willingness to comply.
  7. The taxpayer must reply to an Audit Finding Letter that SARS issues by stating whether they agree or disagree with the findings.
  8. Understatement fines may be enforced if SARS thinks a new assessment is still necessary or if the taxpayer doesn’t respond.
  9. In the event that the tax situation is judged to be erroneous, SARS will subsequently deliver a Finalization of Audit Letter. This letter will explain the justification for the assessment or, if none were found, will mark the end of the audit.
  10. Taxpayers have the option to file an objection in order to contest the assessment.

While the verification or audit procedures are ongoing, no refunds will be given.

What does verification serve to accomplish?

When a taxpayer’s return is in the verification state, SARS must check their actual financial and accounting records, as well as any other supporting papers, to verify the information they have provided.

SARS wants to make sure that the declaration or return fairly and accurately depicts a taxpayer’s tax position, hence this verification is necessary.

Process for SARS Verification

  • SARS will notify you through official letter on eFiling or your preferred form of communication.
  • You will have 21 days from the date of the letter to respond with a Request For Correction (RFC) or supporting documentation. The letter will also specify whether this should be done at a SARS branch or through eFiling.
  • SARS will send a second letter if the first one is not responded to within the allotted 21 days. They will contact you by phone after another 21 days and ask you to give the necessary information within five days. If you continue to ignore the request, SARS will launch an investigation based on data they can obtain from a third party.
  • If the data SARS was able to acquire is insufficient to complete the verification, another letter requesting pertinent information may be sent.
  • Within 21 days of having access to all necessary data, SARS will complete the verification procedure.
  • If it turns out that the claimed tax status is erroneous, an assessment will be made.
  • If no more hazards were found, SARS will then send a notification that the verification is finished.
  • You will receive an Audit or Referral Letter if additional risks are found, and your return will then be recommended for an audit.
  • You have 30 days to file an objection with SARS in order to contest the assessment.

Note: As part of SARS’ compliance procedure, your tax matters may still be sent for audit after the verification process is finished.

How can I see the status of my SARS verification?

Taxpayers can examine their compliance status as decided by SARS online through the My Compliance Profile (MCP) feature on eFiling, and they can take the necessary actions to address any non-compliance issues.

To view your “My Compliance Profile,” follow these steps:

  • Log in to eFiling - In order to activate the Tax Compliance Status (TCS) service, you must be registered for eFiling and have one tax product activated on your profile.
  • Activate the Tax Compliance Status service - If you haven’t already, you must activate the TCS service. Access to your MCP will be provided after it has been activated.
  • Go to “My Compliance Profile” and view it. When you select “My Compliance Profile” from the menu, SARS’ assessment of your standing will be shown.

How long after verification do taxes take?

SARS will raise an assessment based on data they can acquire from a third party if you have been chosen for verification by SARS and you do not comply with the request made.

When SARS has access to all the necessary information, they will subsequently try to finish the verification procedure in 21 days.

You have 30 days to file an objection with SARS in order to contest the assessment.

 

SARS monthly tax tables 2023 - South Africa

Filed in SARS by on 03/14/2023 • 0 Comments
SARS monthly tax tables 2023 – South Africa

sars monthly tax tables 2023,SARS monthly tax tables 2023 - South Africa

 

sars monthly tax tables 2023

 

Note: The rate of 27% is effective from 1 April 2022 in respect PSPs that have a year-end on or after 31 March 2023. For any PSP that has a year-end prior to 31 March 2023, the rate of 28% will apply until the end of that company’s year of assessment.

 

Rates of Tax for Individuals

2023 tax year (1 March 2022 – 28 February 2023)

Scroll down to see the tax table for individuals as well as the tax rebates and thresholds.

23 February 2022 – See the changes from the previous year:

​Taxable income (R) ​Rates of tax (R)
1 – 226 000 18% of taxable income
226 001 – 353 100 40 680 + 26% of taxable income above 226 000
353 101 – 488 700 73 726 + 31% of taxable income above 353 100
488 701– 641 400 115 762 + 36% of taxable income above 488 700
641 401 – 817 600 170 734 + 39% of taxable income above 641 400
817 601 – 1 731 600 239 452 + 41% of taxable income above 817 600
1 731 601 and above 614 192 + 45% of taxable income above 1 731 600

2022 tax year (1 March 2021 – 28 February 2022)

See the changes from the previous year:

​Taxable income (R) ​Rates of tax (R)
1 – 216 200 18% of taxable income
216 201 – 337 800 38 916 + 26% of taxable income above 216 200
337 801 – 467 500 70 532 + 31% of taxable income above 337 800
467 501 – 613 600 110 739 + 36% of taxable income above 467 500
613 601 – 782 200 163 335 + 39% of taxable income above 613 600
782 201 – 1 656 600 229 089 + 41% of taxable income above 782 200
1 656 601 and above 587 593 + 45% of taxable income above 1 656 600

 

2021 tax year (1 March 2020 – 28 February 2021)

See the changes from the previous year:

​Taxable income (R) ​Rates of tax (R)
1 – 205 900 18% of taxable income
205 901 – 321 600 37 062 + 26% of taxable income above 205 900
321 601 – 445 100 67 144 + 31% of taxable income above 321 600
445 101 – 584 200 105 429 + 36% of taxable income above 445 100
584 201 – 744 800 155 505 + 39% of taxable income above 584 200
744 801 – 1 577 300 218 139 + 41% of taxable income above 744 800
1 577 301 and above 559 464 + 45% of taxable income above 1 577 300

2020 tax year (1 March 2019 – 29 February 2020)

No changes from the previous year:

​Taxable income (R) ​Rates of tax (R)
1 – 195 850 18% of taxable income
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of taxable income above 555 600
708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310
1 500 001 and above 532 041 + 45% of taxable income above 1 500 000

2019 tax year (1 March 2018 – 28 February 2019)

​Taxable income (R) ​Rates of tax (R)
1 – 195 850 18% of taxable income
195 851 – 305 850 35 253 + 26% of taxable income above 195 850
305 851 – 423 300 63 853 + 31% of taxable income above 305 850
423 301 – 555 600 100 263 + 36% of taxable income above 423 300
555 601 – 708 310 147 891 + 39% of taxable income above 555 600
708 311 – 1 500 000 207 448 + 41% of taxable income above 708 310
1 500 001 and above 532 041 + 45% of taxable income above 1 500 000

2018 tax year (1 March 2017 – 28 February 2018)

​Taxable income (R) ​Rates of tax (R)
1 – 189 880 18% of taxable income
189 881 – 296 540 34 178 + 26% of taxable income above 189 880
296 541 – 410 460 61 910 + 31% of taxable income above 296 540
410 461 – 555 600 97 225 + 36% of taxable income above 410 460
555 601 – 708 310 149 475 + 39% of taxable income above 555 600
708 311 – 1 500 000 209 032 + 41% of taxable income above 708 310
​1 500 001 and above ​533 625 + 45% of taxable income above 1 500 000

2017 tax year (1 March 2016 – 28 February 2017)

​Taxable income (R) ​Rates of tax (R)
1 – 188 000 18% of taxable income
188 001 – 293 600 33 840 + 26% of taxable income above 188 000
293 601 – 406 400 61 296 + 31% of taxable income above 293 600
406 401 – 550 100 96 264 + 36% of taxable income above 406 400
550 101 – 701 300 147 996 + 39% of taxable income above 550 100
701 301 and above 206 964 + 41% of taxable income above 701 300

2016 tax year (1 March 2015 – 29 February 2016)

​Taxable income (R) ​Rates of tax (R)
​1 – 181 900 ​18% of each R1
​181 901 – 284 100 ​32 742 + 26% of the amount above 181 900
​284 101 – 393 200 ​59 314 + 31% of the amount above 284 100
​393 201 – 550 100 ​93 135 + 36% of the amount above 393 200
​550 101 – 701 300 ​149 619 + 39% of the amount above 550 100
​701 301 and above ​208 587 + 41% of the amount above 701 300

2015 tax year (1 March 2014 – 28 February 2015)

​Taxable income (R) ​Rates of tax (R)
1 – 174 550​ ​18% of each R1
​174 551 – 272 700 ​31 419 + 25% of the amount above 174 550
​272 701 – 377 450 ​55 957 +30% of the amount above 272 700
​377 451 – 528 000 ​87 382 + 35% of the amount above 377 450
​528 001 – 673 100 ​140 074 +38% of the amount above 528 000
​673 101 and above ​195 212 + 40% of the amount above 673 100

2014 tax year (1 March 2013 – 28 February 2014)

Taxable income (R)​ ​Rates of tax (R)
1 – 165 600 ​18% of each R1
​165 601 – 258 750 ​29 808 + 25% of the amount above 165 600
​258 751 – 358 110 ​53 096 + 30% of the amount above 258 750
​358 111 – 500 940 ​82 904 + 35% of the amount above 358 110
​500 941 – 638 600 ​132 894 +38% of the amount above 500 940
​638 601 and above ​185 205 + 40% of the amount above 638 600

Tax Rebates

23 February 2022 – See the changes from the previous year:

Tax Rebate​​ ​​ ​Tax Year​ ​ ​ ​ ​
2023 ​2022 2021​ ​2020 ​2019 ​2018 2017 ​2016 ​2015
​Primary R16 425 ​R15 714 ​R14 958 ​R14 220 R14 067 ​R13 635 ​R13 500 ​R13 257 ​R12 726
​Secondary (65 and older) R9 000 ​R8 613 ​R8 199 R7 794 ​R7 713 ​R7 479 ​R7 407 ​R7 407 ​R7 110
​Tertiary (75 and older) R2 997 ​R2 871 ​R2 736 ​R2 601 ​R2 574 ​R2 493 ​R2 466 ​R2 466 ​R2 367

Tax Thresholds

23 February 2022 – See the changes from the previous year:

​ Age Tax Year​ ​ ​ ​ ​
2023 2022​ ​2021 2020​ ​2019 ​2018 ​2017 ​2016 ​2015
Under 65 R91 250 ​R87 300 ​R83 100 ​R79 000 ​R78 150 ​R75 750 ​R75 000 ​R73 650 ​R70 700
​65 an older R141 250 ​R135 150 ​R128 650 R​122 300 ​R121 000 ​R117 300 ​R116 150 ​R114 800 ​R110 200
​75 and older R157 900 ​R151 100 ​R143 850 ​R136 750 ​R135 300 ​R131 150 ​R129 850 ​R128 500 ​R123 350

 

 

What tax changes will there be in 2023?

SARS monthly tax tables in an image Tax deductions during the 2023 fiscal year

For married couples filing jointly, the standard deduction for the 2023 tax year will be $27,700, an increase of $1,800 from the deduction for the 2022 tax year. The standard deduction for single taxpayers has increased by $900 to $13,850.

 

What are the South African monthly tax brackets?

The tax brackets, which apply to the 2022–2023 tax year, are 18%, 26%, 31%, 36%, 39%, 41%, and 45%, as shown in the tax table. If you are in the 36% tax bracket, for example, you do not pay 36% on all of your income; you only pay 36% on income that is greater than R488 700.

 

How is PAYE tax calculated on a monthly basis in South Africa?

PAYE is equal to (total tax due minus all refunds) / 12.

Although it may look complicated, it is actually rather straightforward.

 

What is the 2023 tax exemption?
$17,000
2023 sees an increase in the gift tax exclusion to $17,000 from 2022’s $16,000. As a result, you won’t have to worry about paying the federal gift tax on gifts of up to $17,000 made to as many recipients as you choose in 2023. Additionally, if you’re married, your partner may also donate $17,000 to the same beneficiaries.

 

How to Declare Dividends on efiling in South Africa?

Filed in SARS by on 02/10/2023 • 0 Comments

How to Declare Dividends on efiling in South Africa?

How to Declare Dividends on efiling in South Africa?

You will receive the shares listed on the South African exchange whether you own stock in a South African or overseas corporation. Once you get your dividend as a shareholder, you are subject to dividend tax. When declaring your dividends, there are some precautions you should take. Continue reading to find out how to file dividends via eFiling.

How Do I Declare Dividends on Efiling?

The appropriate withholding agent pays the tax dividend to SARS after withholding it. If you want to be eligible for lower rates or exemptions, they must give you the declaration and undertaking documents. Send the filled-out form to the withholding agent to request exemption.

When the system asks you which taxes you wish to register for once you register for eFiling, you must select Dividends Tax. The Dividends’ Tax Process mostly consists of two forms that you must complete. These documents comprise the DTR01 for declaring the dividend and the DTR02 for verifying your dividend.

If I Receive Dividends, Must I File a Tax Return?

You are required to file a tax return when you earn dividends. Cash distributions of earnings made by the firm and given to its shareholders are what make up dividends. Additionally, dividends may be paid out in the form of stock, stock options, real estate, debt repayment, or other services.

You will receive a Form 1099-DIV from financial institutions detailing the money you received in dividends during a certain tax year, along with any taxes that were withheld. Dividend payments can be made on a monthly, quarterly, or annual basis. You must pay taxes on your dividends when you file your tax return since they are taxable. The eFile tool assists you in entering your data and manages other challenging computations when you declare your dividends on your 2023 Tax Return.

Dividends generally fall into one of two categories, each of which is taxed differently. Ordinary dividends, which come from a certain corporation’s earnings, are among the most popular varieties. Common or preferred stock often pays ordinary dividends, which are subject to ordinary income tax. You will be required to pay taxes on your dividends at the standard income tax rate, which ranges from 10% to 37%, depending on your income.

The group of dividends that are subject to capital gains tax includes qualified dividends. These dividends are taxed at rates of 0%, 15%, or 20%, depending on your tax level. You must also obtain a schedule that details the number of taxable dividends from the sum you receive in dividends.

You must still record the dividend income when filing your tax return even if you receive dividends but receive no form. To keep everything up to date when you file your tax return, keep track of your dividends in a log or notebook. Your eFile software can assist you in tax preparation and will inquire about any dividends you have received so that you can correctly declare them.

To calculate the tax you should pay on your dividends, you can use utilize free tax preparation software. To ensure compliance, the tools will compute the tax deductions and report your dividends.

 

SASSA

Where Should Dividends Be Declared?

Dividends Tax is withheld by the withholding agency from the dividend due to the owner and is then paid to SARS by the agent. The owner of the dividend is nonetheless liable and accountable for paying the dividend tax if the withholding agent fails to deduct it from the dividends. The only situation where you are exempt from paying tax is if the dividend involves the distribution of an asset in actual money. As a result, the corporation is responsible for paying the taxes. This indicates that the business will pay the dividend tax-free.

The tax should be withheld from dividend shareholders and paid to SARS by the withholding agent, who can be a regulated middleman or business. Prior to the final day of the month following the payment of the dividend, the payments must be made to SARS. The DTRo1 and DTR02 returns must be submitted with every Dividends Tax payment. For the late filing and payment of dividend tax returns, interest and penalties will be assessed.

The dividend owner must receive all necessary undertaking and declaration paperwork from the withholding agency in order to be eligible for exemptions or lower rates. However, only foreign residents are covered by this clause. To request an exemption or reduced rate, the dividend owner must give the withholding agent the properly filled out form. The majority of withholding agents often include the declaration paperwork in the procedure for opening an account. Any changes to the beneficial owner’s information must be communicated to the withholding agency.

 

 

How Do I File a DWT Online?

to eFiling to submit the DWT;

 

  • Your business should first be registered.
  • Select the type of company on the eFiling platform, then click “returns” and “Dividends Tax.”
  • Select the tax period from the selection list next to the “Request Return” button by selecting the “Submit New Return” tab.

If the DWT has already been submitted;

 

  • To make the required adjustments, click “Submitted Return.”
  • Then select “DWT Returns” from the “Request for Correction” menu. This tab can be found under “Filed Through eFiling.”
  • Your return will be updated and your information will be prepopulated.

You must produce the information needed for SARS’s eFiling system in order to pay any applicable Dividend Withholding Tax. The account number, dividend per share, number of shares, tax withheld, dividend value, and net amount tax data (if there are no exemptions) must all be included in your DWT file.

Visit the SARS website at www.sars.gov.za for further information about DWT submission, or call the SARS Contact Center at 080000 (SARS) (7277). On work days, you can also go to your local SARS branch between the hours of 8:00 and 1700.

If you own shares in a publicly traded firm, you are qualified to receive dividends from the business’s earnings. Since dividend income is taxable, you must report it on your tax return. You can use eFiling to declare your dividends, and it will take care of everything.

How to Request My B-BBEE Certificate in South Africa

Filed in SARS by on 02/10/2023 • 0 Comments
How to Request My B-BBEE Certificate in South Africa

How to Request My B-BBEE Certificate in South Africa

How to Request My B-BBEE Certificate in South Africa

The Broad-Based Black Economic Empowerment scheme in South Africa, also known as BEE, has its roots in a constitutional provision with the same name that was passed in 2003.

In an effort to remedy some of the injustices experienced by black South Africans under the apartheid era, the government passed the Broad-Based Black Economic Empowerment Act 53 of 2003 (the BEE Act).

Increased black participation in the ownership, management, and control of South Africa’s economy was the main goal of BEE.

Black people’s participation in the aforementioned areas of the economy may be successfully monitored thanks to BEE.

Despite the law’s admirable goals, many analysts and statistics suggest that BEE may have reached its lowest point in terms of socioeconomic development in South Africa.

It is ascribed to the rise in black South Africans’ wealth, which has seen a 113% growth in the number of high net worth individuals (HNWIs) with assets above $1 million since 2007.

However, when the total number of HNWIs is taken into account, black South Africans trail other formerly disadvantaged groups in wealth accumulation (39 300 HNWIs).

This page offers a thorough overview of all you need to know about B-BBEE certificates in an effort to address some of the informational gaps.

 

How can I make a B-BBEE certificate request?

 

According to the regulations put in place in 2003, namely Section 9 of the Broad-Based Black Economic Empowerment Act 53, in South Africa.

Only registered firms with a revenue of more than R10 million are eligible to receive B-BBEE certificates from the CIPC.

Micro-enterprises that make less than this amount annually are regarded as exempt, and they are not required by law to have a B-BBEE certificate.

Every certificate issued has a 12-month expiration date, after which a new certificate must be applied for.

Additionally, a B-BBEE certificate can only be applied for by a company’s directors and executive members.

The hiring of any third parties or intermediaries is prohibited and illegal.

If a person meets the requirements, they can apply for a B-BBEE certificate through the Companies and Intellectual Property Commission (CIPCBizportal )’s e-services website.

When you register your company with the CIPC at www.bizportal.gov.za, if it is your first time doing so, they will grant you a B-BBEE certificate.

You can register a business directly from the Bizportals homepage, immediately below the site’s banner and navigation.

You will be taken to the BizRegistration page if you select the “Register” option. Choose “Company Register” if you want to register a business and get a B-BBEE certificate.

If you’d prefer to just get a B-BBEE certificate, navigate to the “B-BBEE Certificates” option at the bottom of the page.

Continue by selecting “New Application,” which will prompt you to provide your ID number and password in order to access the following step.

After logging in, you will then be asked for information about your firm and yourself as its director.

All director/member contact information must be current since you will be emailed a special OTP (One Time Pin) to finish the verification procedure.

Bizportal should generate a B-BBEE certificate for your business within 24 hours of this being successfully completed.

sending it to you typically by email.

 

 

Is there a BEE certificate for SARS?

 

Because it lacks the legal authority to do so, the South African Revenue Service (SARS) is unable to provide B-BBEE certificates to residents.

In accordance with the legislative regulations put in place in 2003 to direct the process of black economic empowerment.

Businesses and company owners can obtain B-BBEE certificates from the CIPC and several Sector Education and Training Authorities (SETAs).

Nevertheless, SARS is a government agency, and as such, it is expected that it will adhere to all applicable rules regarding Black Economic Empowerment.

As a result, in order to conduct business with other organizations, both state-owned and private, SARS may be required to show documentation of its compliance with B-BBEE rules and to produce a B-BBEE certificate.

 

SARS

 

How can I verify a business’ B-BBEE certificate?

Knowing the specifics of the firm or agency in question will allow you to determine whether it has a B-BBEE certificate.

In South Africa, the Companies and Intellectual Property Commission (CIPC) and several Sector Education and Training Authorities both grant B-BBEE credentials (SETAs).

By visiting the website of the CIPC or the SETA that granted the certificate, you can determine the status of a company’s B-BBEE certification.

Find the B-BBEE certificate verification part of the website once you’ve arrived there. It might be labelled “Search for B-BBEE certificates” or something along those lines.

Enter the registration number and company name in the next search area.

This ought to return results with the choice of the business’s B-BBEE certificate.

Once you have the company’s B-BBEE certificate, you can check the B-BBEE status of the business along as other pertinent data.

The CIPC and several SETAs have internet portals where certifications can be seen online, so keep that in mind.

However, certain SETAs may need that you get in touch with them directly in order to receive a company’s B-BBEE certificate.

 

 

When can I expect to receive my B-BBEE certificate?

B-BBEE certificates may be issued by the Companies and Intellectual Property Commission (CIPC) as well as SETAs.

On the faster end of the scale, applicants should have their B-BBEE certificate in as little as 24 hours after providing an agency with the information regarding their firm and its directors/members and having it verified.

On the slower end, no longer than three months. However, certain applications can take longer if unanticipated issues crop up that would cause the issuance of a certificate to be delayed.

 

 

Telecoms

 

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