Welcome to the Tax Practitioners webpage

 
SARS places great value on a healthy professional relationship with Tax Practitioners who are key in providing a service to our clients the taxpayers.

SARS is therefore committed to:
  • Engaging with practitioners continuously and constructively
  • Providing access and channels to practitioners
  • Specific Service offerings to registered practitioners
  • Providing specific communications for Practitioners
Here you will find the latest information and updates from SARS to assist you in serving your clients and in broadening the culture of tax compliance.
 

What's New:

  • 13 June 2017 - Dividends Tax Tables - Summary of DTA rates

    An updated summary of the withholding tax rates as per the South African Double Taxation Agreements currently in force (Africa and the rest of the world) was published. 

  • 9 June 2017 - Non-Executive Directors: VAT Registration

    On 10 February 2017, SARS issued binding general ruling (BGR) 41 which confirms that a Non-executive director (NED) who carries on an enterprise in/partly in SA is required to register and charge VAT in respect of any director’s fees earned for services rendered as an NED if the value of such fees exceeds R1 million in any consecutive 12-month period. 

    A NED is required to register and charge VAT on fees with effect from 1 June 2017. In addition, a NED may also choose to register for VAT on a voluntary basis where the fees earned are a minimum of R50 000 in a 12-month period.

    SARS has been receiving several operational queries regarding the VAT registration process and in particular, practical considerations for non-resident NEDs. In addressing these please note the steps in the VAT registration process, channels for registration, financial information and other related information:

    VAT Registration process

    The normal VAT registration requirements must be followed.

    The following options are available for purposes of making the application:
    • via eFiling
      • If the applicant is an existing eFiler, he/she can register for VAT via the RAV01 form. The applicant will be informed via eFiling if an interview is required in which case the VAT application (VAT101 form) must be completed f the applicant is an existing eFiler, he/she can register for VAT via the RAV01 form. The applicant will be informed via eFiling if an interview is required in which case the VAT application (VAT101 form) must be completed
      • If the applicant is not an eFiler, he/she must first register as an ‘eFiler user‘ and can then register for VAT via the RAV01 form
    • At a SARS branch: the applicant can complete the VAT101 form and submit it in person at the nearest SARS Branch
    • Important information to be completed:
      • The nature of person must be “sole proprietor”
      • The liability date must be 1 June 2017 unless the NED chooses an earlier date of liability
      • The main industry classification code is 2572

A NED applying for payments basis of accounting for VAT must do so by selecting the relevant option on the VAT registration application form. Please note that the payments basis option only applies where the total value of taxable supplies made by a NED does not exceed R2.5 million in a 12 month period.

Financial Information

The following documents will be accepted as proof of turnover/financial information:

  • Copy of letter of appointment as NED;
  • Copy of the minutes of the director’s meeting;
  • Copy of a service contract/ agreement; or
  • IRP5/IT3(a) certificate with source code 3620 (Directors Fees – RSA Resident NED) or 3621 (Directors Remuneration – Non-Resident NED)
    • Note: IRP5/IT3(a) certificates with these source codes will not be available prior to the issuing of the 2018 certificates by employers being April - May 2018
    • IRP5 certificates with source code 3620 will only be available where voluntary PAYE was withheld

Practical considerations apply to non-resident NEDs

  • The VAT registration process and supporting documents as highlighted above, will apply
  • The non-resident NED will have to appoint a representative vendor in SA, who controls the NED’s affairs in SA or manages any enterprise of the NED in SA
  • Details of a SA bank account must be provided.

Any additional queries may be sent to NEDEnquiries@sars.gov.za or call the SARS Practitioner Contact Centre on 0860 12 12 19.

  • 15 May 2017 - Introduction of improvements to the Dispute management process
On 15 May 2017 SARS introduced important changes and improvements to its current dispute management process as part of our ongoing commitment to delivering a better service to taxpayers, read more.
  • 18 April 2017 - Employer Annual Reconciliation
    The Employer Annual Reconciliation started on 18 April 2017 and employers had until 31 May 2017 to submit their Annual Reconciliation Declarations (EMP501) for the period 1 March 2016 to 28 February 2017 in respect of the Monthly Employer Declarations (EMP201) submitted, payments made, Employee Income Tax Certificates [IRP5/IT3(a)] and ETI, if applicable. Employers who have not submitted their annual declarations are urged to do so urgently.

    An updated version of e@syFile™ Employer is available which is version 6.7.4. Remember to backup your current information on your computer prior to installing a new version of e@syFile™ Employer.

    You can submit your Employer Reconciliation Declaration (EMP501) and Employees Income Tax Certificates [IRP5/IT3(a)s]  online via e@syFile™  Employer, or if you have less than 50 employees, via eFiling.

    For more information, you can call the SARS Contact Centre on 0800 00 7277.

  • 15 December 2016 - Tax Practitioner Connect newsletter Issue 6

  • 14 December 2016 - IRP5 pre-populated data on the newly released (9 December 2016) ITR14 return

    Please note that SARS has removed the auto pre-population of IRP5 data from the ITR14 return due to issues taxpayers are experiencing with completing their ITR14 Company Income tax returns. SARS will re-introduce this pre-population functionality in January 2017.


In the interim:

  • IRP5 data will NOT be prepopulated onto the ITR14 return;
  • Taxpayers will need to capture any IRP5’s received in the name of the company manually onto the return in exactly the same way as previously;
  • Tax Credits wizard (Company Information first page questions) – Taxpayers will need to enter “Y” to the question: “Will the company be claiming any PAYE credits on an IRP5 certificate?” if they wish to claim any PAYE Credits. By selecting “Y” the number of certificates will be requested and the container allowing the capture of IRP5 Credits Available will be opened.
  • For those Taxpayers who have already requested an ITR14 post the 9 December 2016 upgrade and where the system pre-populated IRP5 data, it will be necessary to select REFRESH RETURN button on the eFiling Income Tax Work Page for CIT (shown below).  On selection of REFRESH RETURN, any IRP5 pre-populated data will be removed and required IRP5 data can then be manually added. All other data will be retained.

 

CIT refresh button for ITR14.jpg


  • 12 December 2016 - Further enhancements to the Income Tax Return for Companies (ITR14)

    SARS introduced enhancements to the Income Tax Return for Companies (ITR14) on 9 December 2016.

    Only the new return will be accepted after 9 December 2016 and where a taxpayer has captured and saved an ITR14 prior to Friday 9 December 2016, the taxpayer would need to open the return which will then be replaced with a new ITR14 return based on the rules applicable for that year of assessment. Read more.

    Changes to the ITR14
    Legal enhancements:

    • For the year of assessment (YOA) commencing on or after 1 January 2016, foreign tax credits cannot be claimed as a rebate in terms of section 6quin due to the fact that this section has been repealed. However, taxpayers can now claim this type of foreign tax credit as a deduction in terms of section 6quat (1C).
    • As from 1 March 2016, all qualifying companies operating within a Special Economic Zones (SEZ) will be taxed at a rate of 15% which is lower than the current corporate tax rate of 28%
    • A question has been added on the return wizard for a company to indicate if it has changed its residency status and if it has, from what date.

        Return enhancements:

    • Dormant companies: The “Dormant Company Details” container now makes provision for dormant companies carrying on the activities of a nominee to declare taxable passive income received or accrued. Please note that it is a legal requirement to submit a tax return even if the company is dormant.
    • The ITR14 return now has an option to indicate if the financial year end of the company changed during the relevant year of assessment.
    • The containers for Local and Foreign Capital Gains and Losses now make provision for a new line item with a new source code for the “claw back” provisions in terms of section 45(5).
    • A new field has been added to the “Non-Residency” container to indicate the date on which the company ceased to be a resident if applicable.
    • IRP5 data will be pre-populated and locked. If you have more than twenty IRP5’s the twentieth one will not be locked, you can make changes on it.

Top Tip: To see an example of the new ITR14 form, click here.

Verification of details
Before completing the ITR14 make sure that that the contact, address, banking and public officer details of the company are correct by verifying and updating it (if required) on the Registration, Amendment and Verification Form (RAV01). You can verify and update the RAV01 details by:

  • Clicking on the “Maintain SARS Registered details” menu option on your eFiling profile. SARS may request you to visit a branch to verify any changes to your banking details which may have been done via eFiling.
  • Visiting a SARS branch. Please consult the Registration, Amendments and Verification(RAV01) guide to prepare the mandatory supporting documents (relevant material) required for updating of banking and public officer details at a SARS branch.

Top Tip: Submissions and Request for Corrections (RFC) can be done electronically on eFiling or at a SARS branch.

  • 07 December 2016 - ITR14 Returns saved before 9 December 2016

    SARS is aware of the concerns raised in respect to the planned enhancements to be implemented to the Income Tax Return for Companies (ITR14) on Friday 9 December 2016. This communication aims to address these concerns. Read more.

     
  • 30 November 2016 - Further enhancements to the Income Tax Return for Companies (ITR14)

As part of the continued process to improve SARS efficiency and enhance taxpayer compliance, further enhancements will be introduced to the Income Tax Return for Companies (ITR14) on 9 December 2016.

It should be noted that only the new return will be accepted after 9 December 2016 and we suggest that if you have completed a return already that you submit this prior to 9 December 2016 as there is a risk that the data already captured may not pull through to the new return. Read more here.

  • 14 October 2016 - Enhanced Dispute management process for VAT

    On 14 October 2016, SARS implemented an enhanced dispute management process for Value-Added Tax (VAT) on the electronic platform. The improved system will enable VAT vendors to lodge disputes via eFiling and electronically at any SARS branch, manage their tax profiles better and also have a consolidated view of all lodged disputes for PIT, CIT and now VAT.

    The benefits are:
    • Ability to lodge disputes electronically via eFiling or at SARS branches (including Request for Remission, Notices of Objection, and Notice of Appeal)
    • Ability to view all dispute correspondence, and where applicable upload supporting documents
    • Taxpayers will have a consolidated view of all their disputes lodged across core taxes on eFiling
    • Outcome letters for Request for Remission (RFR) and Notice of Objection (NOO) are conveniently available on the taxpayer’s eFiling profile
    • Receive updates on dispute outcomes via eFiling for Request for Remission and Objections lodged
    • Ability to dispute multiple periods on one form up to a maximum of 12 periods
    • Ability to submit disputes will be based on the user submission rights.

For more info, see our guide on How to submit a dispute for Income Tax and VAT via eFiling.

Please note: For VAT only, if an ADR1 was completed for a specific period you will need to go to a branch to submit a NOA (Notice of Appeal) as eFiling does not have a history of the ADR submission and will allow you to submit a NOO(Notice of Objection) for the period.

Last Updated: 13/06/2017 11:08 AM     print this page
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