1 March 2011 saw the start of the phasing out of Standard Income Tax on Employees (SITE), which is a component of the
Pay-As-You-Earn (PAYE) method of paying Income Tax and is a final withholding tax on the first R60 000 of your net
remuneration, deducted by an employer.
SITE taxpayers, who received more than one Employee Income Tax certificates [IRP5/IT3(a)] resulting in a combined
income of more than the tax threshold for that tax year (click to download notice below), will now be required to submit an Income
Tax return (ITR12) as of the 2012 year of assessment onwards, during the Personal Income Tax (PIT) Season which
commences 1 July each year.
The SITE system is now being phased out because the tax collection system has been modernised and administrative
processes improved over the years which enables the South African Revenue Service (SARS) too quickly, effectively and
effectively process a taxpayers submission to SARS.
To ease the impact to affected taxpayers (who now have to submit an Income Tax Return), a phasing-out process over
the next two years of assessment has been introduced. Administrative relief measures are provided for to limit any
potential hardship to affected taxpayers.
Taxpayers who received more than one IRP5/IT3(a), from which only SITE (source code 4101) has been deducted, will
now be liable to pay Income Tax for the first time on their combined income. The Income Tax payable will be at a
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.