Tax Directive Enhancements

Sep 16, 2022 | Uncategorised

16 September 2022 – SARS enhanced the Tax Directive Process by validating specific data captured on the tax directive application form against the information held by the Financial Sector Conduct Authority (FSCA). The changes will only impact the back-end processes of SARS; there will be no changes made to the IBIR-006 Tax Directives Interface Specification. The following data will be validated against the Funds’ information as registered with the FSCA:

The registered fund name;
Participating employer name; and
FSCA registration numbers (participating employer number included) should be captured as it is on the FSCA data base.

Data captured on the tax directive application must correspond with the registration data with the FSCA. Incorrect data or omitted data will result in the tax directive applications being declined.

A new reason has been added on the IRP3a to cater for foreign companies that are not registered for Pay As You Earn to make severance payments to South African tax residents who have performed work within the Republic for the said company. When the employer pays the employee, the tax practitioner or SARS will select reason <Severance benefit – Paid by a non-resident Employer>:

When the taxpayer/Tax Practitioner completes the return, a new field will be added on the ITR12 to cater for payments made by foreign entities. The taxpayer/Tax practitioner must select <Y>
This will open a container whereby <new source code 3925) will be generated to capture the amount of the severance benefit received and the Tax Directive number which would have been issued for this purpose.

The following Guides were updated:

IT-AE-33-G01 – Tax Directive for Emigration, Cease to be resident and Expiry of visas – External Guide
IT-AE-41-G02 – Guide to Complete the Tax Directive Application Forms – External Guide
IT-AE-41-G03 – Guide to Complete Submit and Cancel a Recognition of Transfer – External Guide

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