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Interpretation Note 76 - Tax treatment of tips for recipients, employers and patrons

28 February 2014   (0 Comments)
Posted by: Author: SARS Legal and Policy
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Author: SARS Legal and Policy

Interpretation Note: No 76 (IN), published on 26 February 2014, discusses and clarifies the potential income tax, SDL and UIF implications for a recipient on the receipt of tips encountered in (but not limited to) the service industry. This Note will focus on a "tripartite” tipping relationship between the following three parties: 

  • The patron
  • The recipient
  • The owner

Please click here to download IN No 76


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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