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Don’t miss SARS deadline


16 March 2021

For more details on the submission of payroll data and the online platforms available for submission, employers can visit the PAYE page on the SARS website

Suzuki Ermelo (WEB) 22 September

The South African Revenue Service (SARS) is calling on employers to prepare data for the annual employers filing season. “SARS calls on employers to ensure that they are ready to submit their annual reconciliation declarations with the latest and most accurate payroll information about their employees and the tax they have deducted,” said the revenue service. The revenue service said it is committed to providing certainty and clarity to all taxpayers and traders regarding their tax and customs obligations so that they can remain compliant and to ensure that transacting with the organization is as simple and easy as possible.

At the same time, SARS expects that providers of third-party information from institutions who administer medical aid schemes, retirement annuities and others also provide the latest and accurate information to make it easy for taxpayers who are required to file an income tax return, stated the revenue service. However, the ease and simplicity of transactions with SARS depends on each segment of taxpayers, traders and third parties fulfilling their legal obligations to ensure a seamless service offering by SARS. The data that must be submitted to SARS from employers should cover the monthly employer declarations submitted, payments made and Tax Certificates (IRP5/IT3) as generated, covering the full tax year from 1 March to 28 February. Information submitted by third parties should cover the same tax period. “From the side of employers, their payroll data is of vital importance to SARS. Firstly, it gives a reconciled account of what amounts of tax the employer deducted from the taxable remuneration of each of its employees.

Secondly, it shows what amount of tax the employer has paid to SARS on behalf of the employee. It also records other allowances that an employer pays to an employee as part of their remuneration benefits,” said the revenue service. Based on this payroll information and data from third parties, SARS will be able to issue an income tax return to taxpayers that is pre-populated with the relevant information for the ease and convenience of taxpayers who do not have complex tax affairs. For these taxpayers, filing a return becomes a simple matter of checking that all the information pre-populated on the return is correct and then submitting the return to SARS.”

Employers and third parties have from 1 April 2021, until 31 May 2021 to submit their data to SARS. Employers who fail to submit payroll data on time may become liable for late submission penalties of up to 10% of the value of their payroll. “In the interests of their employers and a seamless and hassle-free filing season, we urge all employers to now prepare accurate and up-to-date information that should be submitted to SARS. “ For more details on the submission of payroll data and the online platforms available for submission, employers can visit the PAYE page on the SARS website

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