Filing season 2010: What's changed?
Tax legislation is constantly changing as the South African Revenue Services (Sars) seeks to enhance its operation, expand its influence and ensure that South Africans are able to pay their taxes as easily as possible.
Several changes have been made in 2010 to IRP5s / IT3(a)s, the official tax certificates used to record employees' taxable earnings and deductions and any tax that has been deducted from their income, as well as amendments to the tax filing process.
The new tax submission form is now two pages long, rather than one page long, as additional information is required on employee tax certificates. Further changes include the fact that the period of reconciliation for employers will be twice a year in the 2011 tax year, although it looks like in years to come, reporting will take place on a quarterly basis, while individuals will submit returns once a year.
In terms of the Sars E@syFiling system, electronic tax certificates imported into E@syfile must now include an Employer Trade Classification code.
Everyone has to have an income tax reference number and must therefore be registered. (This will only be applicable in September 2010)," says De Villiers. "Contact telephone numbers are also required for each employee, as are business and residential addresses, ID numbers and bank account details (if employees aren't paid in cash). Total UIF and SDL contributions must also be included on each employee tax certificate.
The first bi-annual reconciliation is due to take place in August 2010, with the second due at the end of May 2011. The new disclosure requirements of employee details will allow Sars greater accuracy in matching the information on employee income tax certificates with data from other sources.
Companies must now put processes in place to ensure that all the necessary IRP5 / IT3(a) employee details are captured on their systems before an employee is even loaded onto the payroll system," he says. "If a business has a good HR software solution that covers all aspects of human resources, this new process should be easy to implement.
*Rodney De Villiers is CEO of Talenger Holdings
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Comments
New employments for ve rrr yyyyy small bookkeeping company has to be made for all the additional administration by SARS. My income did not increase as well. Are we going to get something back from SARS in the future for doing all the work now?
by Blondie on July 12 2010, 14:25
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