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News & Press: SARS News & Tax Administration

Phasing out of SITE (SARS Notice)

Sunday, 24 June 2012   (0 Comments)
Posted by: SAIT Technical
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By SARS Legal & Policy

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 reduced amount.

Click here to download the SARS Notice.



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.

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