11 April 2025 – The tax directive system, forms, guides and standard operating procedures have been updated to incorporate the 2025 legislative changes which include the following:
RST01 Tax Directive Application Form
- The application for requesting relief from South African tax is now fully automated. Taxpayers who require SARS to apply the provisions of a Double Taxation Agreement (DTA) for pensions and/or annuities payable from a South African Retirement Fund can now submit their application via eFiling.
- SARS will evaluate the tax directive application within 21 working days to determine if the pensions and/or annuities payable to the taxpayer will not be subject to tax in South Africa under the applicable DTA.
IRP3(a) Tax Directive Application Form
- A new reason – Backdated (Antedated) Salaries and/or Pensions, has been added to enable employers to include correct information to assist employees who wish to opt to be taxed in terms of section 7A (i.e. employees’ tax has accrued in the prior tax year(s)).
- The process for non-residents who require a DTA to be considered on the taxation of a Savings Withdrawal Benefit was included.
Form B Tax Directive Application Form
- The allowable transfers for the reasons Transfer unclaimed benefit’ and Transfer – Inactive Member with Insufficient Information were updated.
- The tax directive reason ‘Emigration Withdrawal’ was removed as the enabling provision in the Act was deleted effective from 1 September 2024.
Form C Tax Directive Application Form
- The tax directive reason ‘Emigration Withdrawal’ was removed as the enabling provision in the Act was deleted effective 1 September 2024.
- A new tax directive reason ‘Transfer before Retirement [Par 2(1)(c)] was added. With effect from 1 March 2025 paragraph 2(1)(c) read with paragraph 6A of the Second Schedule to the Act provides that a member of a retirement annuity fund, who has attained the normal retirement age, as defined in the rules of the fund, but before electing to retire from that retirement annuity fund, may transfer his or her retirement interest in that retirement annuity fund, to another retirement annuity fund.
IRP3(c) Tax Directive Application Form
- Trusts will be able to electronically apply for a tax directive allowing the annuity provider to not withhold PAYE on annuities owned by a Trust that is registered as an employer. The tax directive is issued in terms of paragraph 10 read with paragraph 11(a) of the Fourth schedule to the income Tax Act 58 of 1962, as amended.
- The trust will account to SARS for tax withheld from payments to its beneficiaries.
Updated guides:
- IT-AE-33-G01 – Tax Directive Cease to be resident and Expiry of visas – External Guide
- IT-AE-41-G01 – Completion Guide for IRP3(a) and IRP3(s) Form – External Guide
- IT-AE-41-G02 – Guide to Complete the Tax Directive Application Forms – External Guide
- IT-AE-41-G04 – Guide to the Tax Directive functionality on eFiling – External Guide
