FAQ: Can a taxpayer/pensioner choose to be excluded from the use of this tax rate?
Yes, the taxpayer/pensioner may choose not to use this tax rate. In this instance, you are required to inform your fund administrator in writing. Your fund administrator will then use the nominal tax rates to calculate the PAYE to be deducted from your income. Remember, the tax rate under this new legislation is calculated and […]
FAQ: What if I still owe SARS a substantial amount after this legislation, Para2(2B) of the 4th Schedule has been applied on my Pension or Annuity?
The debt must be paid by the stipulated due date. Should you be aware of other sources of income that you have not told SARS about, you may choose to opt out and instruct one of the employers to deduct a higher tax rate in order to cover the potential shortfall on assessment.
FAQ: Do I have a choice regarding the use of this new tax rate?
Yes, you have a choice. You can inform your fund administrator to opt out, by so doing, you will be taxed at the nominal tax rates. This also means that you may have a tax debt at the end of the tax year which you will have to pay SARS.
FAQ: How would SARS determine a more accurate monthly PAYE deduction?
SARS will use the latest data available on our records to calculate the most accurate tax rate. Should your circumstance change during the tax year, you may choose to opt out.
FAQ: What is the impact of this legislation to my monthly or annual tax obligation?
The application of this legislation ensures that the correct rate of tax is deducted from your PAYE to minimise the shortfall on assessment. Should you choose to opt out and use the PAYE calculated using the nominal tax rate, you may have a significant tax debt on assessment.
FAQ: 2. Why am I receiving a special tax rate
You have been identified as a taxpayer/pensioner that receives more than one source of income of which at least one of the incomes is from a retirement annuity. A new legislation has been promulgated to ensure that the most accurate rate of tax is applied to your monthly income to avoid any debt you may […]
FAQ: 1. What is the meaning of the letter titled, Employee’s tax (PAYE) on your pension or annuity for tax period 1 March 2023?
To ensure that the correct PAYE amount is deducted monthly and to avoid a significant tax debt to SARS at year-end. The letter is a directive issued by SARS to your employer or pension fund and it indicates the tax rate percentage which should be used in the calculation of PAYE which should be deducted […]
FAQs for the SARS USSD services
If my cell phone number and/or information used does not match, how do I update it? Also, how do I update my registered contact details with SARS? You may update your contact details via either of the following channels: SARS eFiling SARS MobiApp Booking an appointment
FAQ: What is the process of applying for Section 18A status for Public Institutions?
Public Institutions may be considered for approval under Section 18A if they are conducting public benefit activities (PBAs) listed in Part II of the Ninth Schedule. If the Public Institution conducts Part II public benefit activities (PBAs), it will be considered with the initial application for section 18A. If the changes to the objects are […]
FAQ: Can Public Institutions apply for Section 18A status?
Yes, Public Institutions conducting public benefit activities listed in Part II of the Ninth Schedule qualify for approval in terms of Section 18A.
