SARS latest plan to tackle taxes digitally is in need of some clarification according to experts.
The South African Reserve Service plans to collect taxes from individuals on a real-time monthly basis, but several practical issues need to be addressed before then, says Joon Chong, a partner at Webber Wentzel.
Reduce the payroll administration for employers, payroll administrators and SARS\enable employees to monitor their tax obligations during the tax year;Relieve the necessity for most salaried employees to file annual tax returns. “These third-party returns, together with the IRP5 certificates issued to employees and EMP 501 returns filed with SARS by employers, are currently used to pre-populate the ITR12 annual tax returns for individuals.”
The legal expert noted that through a “push directive” or the IRP3e directives issued by SARS to “employers”, they can then require employers to withhold employees’ tax [PAYE] using the higher effective tax rate rather than, the lower calculated rate based on the actual remuneration paid by the employer.
There is, however, no information on how SARS will collect the tax due on business income, rental income and capital gains which are not subject to third-party data reporting.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Big travel changes coming for South Africa – including a new ID systemThe Department of Home Affairs says it is working on a number of new technologies which it says will help speed up travel times.
Read more »
Big shift for marriages and divorces in South AfricaMarriages are becoming less common in South Africa new data from Statistics South Africa shows.
Read more »
Worries over post-lockdown crime wave in South AfricaSouth Africans expect crime to continue increasing in the coming months as the impact of prolonged lockdown and economic restrictions take hold, a new survey by the Automobile Association of South Africa shows.
Read more »
The rules you should know before buying in a complex or estate in South AfricaThe popularity of gated communities – and especially estates – has grown steadily over the past few years, thanks to the added security that they offer homeowners.
Read more »
WATCH: New Ford Ranger makes dramatic first appearance in South AfricaBlue Oval teases South African public with exclusive glimpse of its impressive new bakkie which is expected later in 2022.
Read more »
Smartphone trade-ins in South Africa — up to R17,835 discount for old phonesMyBroadband compared trade-in estimates from Samsung and the iStore to several third-party services.
Read more »