合乐娱乐城到天上人间:?Government Institutions

What's new?

  • 3 May 2018 - Tax Treatment of Relocation or Resettlement Expenses
    Employees may be obliged to move from one place of residence to a new place of residence, due to that employee transferring from their current location of employment to another. The employees’ costs associated with such relocation are private in nature, and if the employer carries these costs, a benefit or advantage accrues to the employee that is subject to tax.

  • 5 May 2017 - What Constitutes Severance Pay when Applying for a Tax Directive
    ?
    SARS would like to clarify the treatment of severance pay when applying for a tax directive.??
    ?
    It has been observed that when government institutions apply for a tax directive with regard to a severance payment, there may be amounts included in the severance pay amount that relate to leave pay and bonus.?
    ?
    Inclusion of such amounts has the effect of understating the taxes due by employees and is therefore incorrect.???
    ?
    The term “severance benefit” is defined in section 1(1) of the Income Tax Act,1962 and means any amount that is received by or accrued to a person in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of the person’s office of employment or of the person’s appointment to any office or employment, if-

合乐娱乐在线 www.16zsx.com.cn a)?Such person has attained the age of 55 years;
b)?Such relinquishment, termination, loss, repudiation, cancellation or variation is due to the person becoming permanently incapable of holding the person’s office? or employment due to sickness, accident, injury or incapacity through infirmity of mind or body; or
c)?such termination or loss is due to-

(i) the person's employer having ceased to carry on or intending to cease carrying on the trade in respect of which the person was employed or appointed; or
(ii) the person having become redundant in consequence of a general reduction in personnel or a reduction in personnel of a particular class by the person's employer,
unless, where the person's employer is a company, the person at any time held more than five per cent of the issued shares or members' interest in the company.

The following is to be excluded from the severance benefit on the tax directive application form:

    • Any amounts paid / payable in respect of services rendered. For example any amounts including any voluntary award in terms of paragraph (c) of the gross income definition
    • Per paragraph (f) of the gross income definition, any amounts in commutation of amounts due under any contract of employment or service.

As a result, leave pay, notice pay, bonus/pro rata bonus must not be included as part of the severance benefit as these amounts are not received as a result of the termination of employment.

  • Notice pay flows from the commutation of amounts due under the contract of employment and stems from a contractual obligation between the employer and employee to remunerate the employee for services rendered. Such amount constitutes an amount received under paragraph (f) of “gross income”
  • Leave pay and bonuses are received in respect of services rendered and fall with paragraph (c) of “gross income.

We have observed that amounts which do not constitute a severance benefit (e.g. leave pay, bonus and pro rata bonus) are included in the tax directive application form.
?
It is important to note, that at the time that the government institution submits the application for a tax directive, SARS will not be aware of the makeup of the amounts. SARS will act on the basis of the information contained on the tax directive. In the event however, of a PAYE audit on the Government Institution, where additional information is requested and this matter comes to light, it is the Government Institution that will be required to pay in the correct taxes that should have been deducted from the employee.
?
It is therefore important that representatives of government institutions who are responsible for the requesting of tax directives from SARS have a? clear understanding regarding what constitutes a severance benefit.
?
Additional information in this regard can be found in the “Guide for Employers in respect of Employees (2018 Tax Year)" and "Tax and Retrenchment" webpage.?Queries can also be directed to [email protected].

?
Welcome to the area of the website specifically designed to meet the tax needs of government.

Our main areas will be:

If there is any other information you’d like easy access to in this section please complete our Government Feedback Form.

?

There are three spheres of Government as per the Constitution, namely:

  • National;
  • Provincial; and
  • Local.

Clarity of what a Government institution is helps to identify taxpaying institutions that form part of the system of inter-governmental relations and SARS is able to offer the correct blend of education and service products that help these institutions achieve tax compliance. The definition of a Government Institution is as follows:
  • National Government Departments per Schedule 1 of the Public Service Act;
  • Provincial Government Departments per Schedule 2 of the Public Service Act;
  • National Parliament as per Chapter 4 of the Constitution of the Republic of South Africa;
  • Provincial Legislatures per Chapter 6 of the Constitution of the Republic of South Africa;
  • Local Government: Municipalities as per the Municipal Structures Act and Section 155(6) of the Constitution;
  • Municipal Entities - The Municipal Systems Act defines three types of entities that may be established by a municipality with effect from 1 August 2004 (private company, service utility or multi-jurisdictional service utility). These include Museums and Art Galleries, Community Halls, Tourism, Transport and Buses, etc.;
  • Public Entities as listed in the Public Finance Management Act (PFMA);
  • Public FET Colleges as defined in the Further Education and Training Colleges Act;
  • Universities as defined in the Higher Education Act;
  • Public Hospitals or Public Health Care Establishments as defined in the National Health Ac;
  • Public Schools as defined in Chapter 3 of the South African Schools Act;
  • Public Museums as defined in the Cultural Institutions Act; and
  • Public Pension Funds created as per the Pension Funds Act.

 

Last Updated: 03/05/2018 3:32 PM     print this page ?
SARS eFiling eFiling Login eFiling Register Now eFiling Forgot Password eFiling Forgot Username E@syFile
FIND A PUBLICATION
FIND A FORM
FIND AN FAQ



  • 【广州天气】最新广州今天天气,实时提供广州气温、空气质量、24小时天气预报、生活指数查询 2019-02-20
  • 陕西拍摄到野化放归林麝活动影像 放归林麝已度过危险期 2019-02-19
  • 2000年出生的孩子属龙,要风得风,要雨得雨 2019-02-19
  • 其实逻辑很简单,分配既涉及消费资料又涉及生产资料,消费资料可以按需分配,生产资料就必须按能力意愿行动及生成的结果分配了。 2019-02-18
  • 个税法迎第七次大修 起征点调至每年6万元 2019-02-18
  • 英伦绅士新打开方式 试驾捷豹XFL 3.0SC 2019-02-17
  • [网连中国]赛龙舟 包粽子 办诗会……全国各地品民俗迎端午 2019-02-17
  • 一年见两次  男孩火车站帮爸爸拔白发 2019-02-16
  • 天上不会掉馅饼,想要富起来,就要把别人的据为己有,能把别人的据为己有的问世间能有谁,能有几人,所谓的专家明白了吗。 2019-02-15
  • 把“办成率”和代表“满意率”结合起来 2019-02-15
  • “一把手”的学习笔记 2019-02-14
  • “香会”,中国代表团驳斥美防长言论 2019-02-13
  • “世界这么大,我想讲堂课”日本小学老师将骑自行车环游世界 2019-02-12
  • 回复@老老保老张工:你肯定有咱无法企及的本事!比如你可以不要脸,咱就不行。 2019-02-11
  • 养老保险基金 中央怎么调剂?br养老基金总体收支平衡收大于支 2019-02-10
  • 971| 959| 605| 611| 908| 376| 21| 523| 385| 632|