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News & Press: Employees' tax (PAYE)

Micro Businesses & PAYE

26 January 2013   (0 Comments)
Posted by: SAIT Technical
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By Michael Stein (Friday Page)

Paragraph 11 of the Sixth Schedule to the Income Tax Act deals with the interim payments of tax (a euphemism for provisional tax payments) to be made by registered micro businesses.

Anamendmentto para 11 proposed by the Taxation Laws Amendment Bill 2012 inserts para 11(4A). It provides that for purposes of para 2(1) of the Fourth Schedule (PAYE payments toSARS) and s 89bis(2) (interest on late payments of PAYE), a registered micro business may elect to pay the PAYE deducted or withheld under that paragraph during the first six calendar months of the year of assessment to the Commissioner by the end of that six-month period and the PAYE deducted or withheld within the last six calendar months of the year of assessment by the last day of the year of assessment.

This amendment, once it becomes law, will provide a cash-flow concession to these taxpayers, but, at the same time poses a danger to them, since there is the risk that they will use funds that they will later have to pay tosarsto finance their operations and then find themselves short of funds when they need to pay the PAYE over tosarsat the end of the relevant periods.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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