S.Africa employers urged to adapt to new tax laws - CNBC Africa

S.Africa employers urged to adapt to new tax laws

Southern Africa

by Thando Matutu 0

Tax legislature.PHOTO:Getty images

The South African Revenue Service (SARS) has devised a convenient application to allow employers to apply tax transactions with SARS online.

“Employers must understand that if they register for the deductions employees’ tax they must submit a reconciliation of contributions for the year,” Madelein van der Watt development manager of Sage Pastel Payroll and human resources told CNBC Africa.


The filing season opened on the 21 April 2014 and employers need to generate employee tax certificates and reconcile the deductions they have received within the year.

(READ MORE:S.Africa's tax law a challenge for SMME’s)

The deadline for the submission of reconciliations tax deductions is 31 May 2014.

“They have to issue tax certificates to each individual employee, their individual personal information, contact details and banking details,” said van der Watt.

SARS have embarked on a modernisation project since 2008 in order to create sufficient and convenient ways of transaction.

The development of the e-filling website system is available outside of normal business hours to the disposal of employees’. It is believed that employers do not understand the convenience of utilising the internet options on SARS.

However, people are insecure of the information disclosure of their private assets and this leads to a reluctance in utilising the electronic administration process. To address this issue the e-filing system is designed for customer interaction.

“Employers can place queries and disputes. The query is traceable with notification of status and then query is available on the application, “said van der Watt.

Medium and small enterprises should register their tax deduction forms regardless of revenue or capital all employees must be registered with SARS.

“The payroll application and the SARS application saves the data securely on the desktop and one can fill in the official data when their information is final. All of this will be off-line not on bandwidth,” she said.

It is important for employees to update their interaction with SARS in order to avoid inconvenience and to be updated with all policies. Guidelines are available on the National Treasury as well the SARS websites with all the information that explains new rules when it comes to calculate income for employees

(READ MORE:S.Africa’s tax collection for February rises above estimate)

“The change of medical aid tax credit system contributions of employees older than 65 years of age. Last year it [these employees] were not allowed tax deduction from March this year the tax credit system applied for their Medical aid credit systems,” said van der Watt.