What types of tax are government institutions registered for?
Government Institutions exist at a National, Provincial and Local Sphere of Government. There are Government Departments as listed in the Public Service Act; State Owned Entities, Public Entities as listed in the PFMA, Municipalities, Municipal Entities, Pension Funds, Further education and training colleges (FET’s), Sector Education and Training Authorities (SETAs), Public Universities, Public Schools, Public Hospitals etc.
- Government Departments are registered for Pay-As-You-Earn (PAYE) only
- Municipalities are registered for Value Added Tax (VAT) and PAYE
- Public Entities may be registered for all tax types
- Provincial and National Government Departments are exempt from the registration and payment of Unemployment Insurance Fund (UIF), and may register for Skills Development Levy (SDL)
- Some government institutions are exempt from the payment of Income Tax as they are non-profit institutions.
What are rights and obligations on Government institutions who are also tax exempt institutions
For more information on tax exempt institutions click here.
What are your rights in event that you are being subjected to an audit
Registration for UIF and SDL for non-permanent state employees
- In terms of the UIF and SDL Acts, employers within Provincial Government and National Government (with the exception of the National Parliament and Provincial Legislatures) are exempt from the registration and payment of UIF and are exempt for registration for SDL.
- In regard to non-permanent state employees however, UIF and SDL is due.
- More detail in this regard is available in the SARS Guide for Employers in of Unemployment Insurance Fund available on the SARS website. However, also keep in mind that where an employer needs to pay UIF, even if payment is to be made to SARS, the employer is also required to register all its employees with the UIF and provide detail of employees to the UI Commissioner for each employee when registering and also when the UIF remuneration changes. Detail in this regard will be available on the UIF website (www.uif.gov.co.za). The Unemployment Insurance Commissioner is responsible for the payment of benefits in terms of the Unemployment Insurance Act and we suggest that employers / employees either check the UIF Website or contact the UI Commissioner’s office for more detail regarding the claiming of benefits.
- The Unemployment Insurance Commissioner is responsible for the payment of benefits in terms of the Unemployment Insurance Act and we suggest that employers / employees either check the UIF Website or contact the UI Commissioner’s office for more detail regarding the claiming of benefits.