Lighthouse Consulting

SARS would like to thank you for submitting your Annual Reconciliation Declaration (EMP501) on time in 2023. This is a reminder that the 31 May 2024 deadline for the submission of your 2024 EMP501 is fast approaching.
Most employers submit accurate information on time to make it easier for their employees to meet their tax obligations. Do not wait.
What do you require to comply?
• Monthly Employer Declarations (EMP201) for pay-as-you-earn (PAYE), Unemployment Insurance Fund contributions, and the Skills Development Levy, where applicable;
• Information about payments made (excluding penalties and interest paid); and
• Employee tax certificates (IRP5/IT3[a] generated) covering the tax year from 1 March 2023 to 29 February 2024.
Download the most recent version of e@syFile Employer through SARS eFiling at www.sarsefiling.co.za.
Channels to submit your EMP501
Employers with more than 50 employees must submit an EMP501 using e@syFile Employer.
Employers with one to 50 employees can:
• Submit an EMP501 using e@syFile Employer or SARS eFiling;
• Create a tax certificate from their payroll and import the file on SARS eFiling; and/or
• Change, cancel, or capture certificates on SARS eFiling if there are fewer than 50 certificates.
Need more Information?
For more information, please visit the SARS website at www.sars.gov.za.
Visit our YouTube channel, SARS TV () and search for the Employer videos for guidance.
Avoid penalties! Submitting an incomplete EMP501 or submitting an EMP501 after the due date will result in administrative penalties of up to 10% of the year's PAYE liability.
Your employees' tax compliance starts with you, the employer! If your submission is accurate and complete, your employees will file their returns hassle-free and may not need to take time off to sort out their tax matters.
Please ignore this message if you have already submitted your EMP501 for the prescribed year.
We appreciate your cooperation.
Kind regards,
SARS

Please do not reply to this email. Replies to this message will be sent to an unmonitored mailbox. If you have any questions, visit the SARS website at www.sars.gov.za.

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Welcome to another week, and another edition of your essential South African tax update!

A South African tax practitioner is excitedly packing a beach bag for "Freedom Day." They throw in sunscreen, a swimsuit, and a giant stack of tax forms.

South African tax practitioner (to themself): "Freedom to work on the beach... for one glorious day!”

With the rise in SARS audits, tax practitioners are encountering several internal challenges. These challenges include:

- Our client's provisional tax payments for 2019 to 2023 likely included VAT (Value Added Tax) along with income tax. Since income tax and VAT are separate, their final income tax liability will differ from the provisional amounts paid.

Tax adjustments will be made after the final assessments for the year are complete. Provisional tax payments are based on estimates, so retroactive changes aren't possible. However, if your provisional tax payments exceeded your final tax liability, you will receive a refund for the overpayment.

- A client bought a property in the business name in dec 2022, and the bookkeeper did not know to take the vat. we have discovered this now. can he claim the vat back in the current or subsequent vat periods?

You have 5 years from invoice to claim your back, you should claim the VAT in the subsequent period.

- What is the process for initiating the deregistration of our company with the South African Revenue Service:

Obtain a letter from CIPC confirming deregistration

Ensure Compliance: Verify all SARS (South African Revenue Service) tax returns are up-to-date

Schedule SARS Appointment: Book an appointment with SARS to deregister for PAYE (Pay As You Earn) and VAT (Value Added Tax). Submit the CIPC (Companies and Intellectual Property Commission) deregistration letter along with standard documentation.

Upon successful deregistration, SARS will provide confirmation.

Schedule Final Appointment: Schedule a separate appointment with SARS to deregister for Income Tax.

- Considering the rental agent is VAT-registered, would their commission fee be subject to VAT charges?

Yes, as this is in furtherance of they business.

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We understand the importance of staying ahead of the curve. This newsletter empowers you to confidently advise your clients and ensure their tax compliance.

Thank you for reading this issue of Tax Cents!

Until next week, stay informed, stay compliant and stay tax savy

Tax Cents
Talha Farouk Valjee

Notice

The SARS Business Rescue email address will change to [email protected] as of 1 May 2024.

Trusts, PBOs and issuers of solar installation certificates of compliance will now required to submit returns of information to SARS.

This is in terms of a recent draft public notice released by SARS for public comment - which are due by 14 April.

See 2.14, 2.15 and 2.16 (on page 3) of the document. Link below:
https://lnkd.in/dBEb2hU3

If you are a SAICA member and have any comments and concerns on potential difficulties, email us at [email protected]

Your dormant company: a tax penalty landmine Hobbs Sinclair tax specialist and CEO Neill Hobbs explains how to avoid an unpleasant run-in with Sars.

TAX TIP: SARS virtual appointment in any branch/region

Members are reminded that if you want to make a virtual booking, you can do it in ANY branch/region. It does not have to be where you reside.

When you have selected a branch under ‘Preferred Branch’ and the system returns a message ‘The selected Province or Branch does not have available appointment slots….‘ then please select another Province and/or Branch.

SAICA - The South African Institute of Chartered Accountants

SARS is done asking nicely The National Prosecuting Authority (NPA) is issuing summonses to taxpayers with outstanding tax returns as part of a continued compliance drive by the South African Revenue Service (SARS).

Company director ordered to pay back the money to SARS | South African Revenue Service The director of a company found guilty of submitting nil VAT returns while the business was actively trading, has been ordered by the Bloemfontein Regional Court to pay the South African Revenue Service (SARS) an amount of R400 853.

How to add a company to your existing eFiling profile and request the transfer of your Corporate Inc General disclaimerThese tutorial videos are provided to help taxpayers understand their obligations and entitlements under the tax Acts administered by the C...

Did You Know? - Your business can face a fine if you hire illegal immigrants.

Section 42 of the Immigration Act, 13 of 2002, criminalises the employment of an illegal immigrant. Subsection 42(2) of the Act rejects the claim of ignorance as a valid defence in criminal proceedings, while Section 46 of Act 13 of 2002 as amended by the Immigration Amendment Act, 13 of 2011, makes said criminal act punishable by a fine or imprisonment of 1 year on a first conviction, a fine or imprisonment of 2 years on second conviction and imprisonment of 3 years with no option of a fine on a third conviction.

To find out how SEESA can help your business visit our website for more:
https://bit.ly/3lR6anB

"SMS" the word "SEESA" to 45776 with your query and a professional Legal Advisor will contact you!

SARS Webinar: Trusts & Tax Obligations Webinar

See below invitation from SARS:

The South African Revenue Service (SARS) invites you to a detailed and comprehensive tax overview for trusts to make it easier for trustees or tax practitioners to comply with tax obligations.

Trustees or their representatives are required to ensure that all Trusts they are responsible for, registered with the Master of the High Court or not, comply with Tax Acts for tax purposes.
Thus, SARS will provide clarity and certainty of taxpayer obligations to equip all with the relevant information and insight required to make it easy to meet tax obligations.

The details of the event are as follows:

Date: Thursday, 29 July 2021
Time: 17:30 – 19:00
Platform: Youtube
YouTube link: https://youtu.be/lz-jxDg8XXc

SAICA - The South African Institute of Chartered Accountants