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Warning: SARS will reject your tax certificate if you don't include these nine pieces of information

by , 27 October 2014
It's your obligation to give your employees tax certificates. Whether you give them IRP5s or IT3(a)s, they all have to contain the correct information.

If these certificates don't, SARS will reject them.

And then it will penalise you for not complying with the law.

To avoid this, ensure your tax certificates contain this vital information...

 

Nine pieces of information your tax certificates must have on them

 
1. Transaction year
This is the year in which you deduct and pay employees' tax on their remuneration. This includes the tax your employees accrued during the previous tax year.
 
2. Year of assessment
The year your employee accrues the income. 
 
3. Period of reconciliation
The year and the month that concludes the relevant reconciliation period. 
 
4. Certificate number
You must issue a unique number for each employee tax certificate, which you can't use again. 
 
For example, if you issue certificate no 10000001 for PAYE reference number 7990799999 and year 2009, the certificate number will be 799079999920090000000010000001.
 
5. Employees' addresses 
You must follow the formal national address structure. The format is:
 
Apartment block and number;
Street address;
Suburb;
Province; and
Postal code.
 
*********** Hot off the press  ************
 
Get all your business tax questions answered by our experts for FREE thanks to the Tax Helpdesk… 
 
It comes standard with your Digital Practical Tax Handbook
 
Click here for your copy. 
 
*************************************
 
6. Banking details 
You must provide your employees' banking details on the new IRP5/IT3(a) certificates. SARS validates your employees' bank details on their tax return against the IRP5/IT3(a) to ensure accurate and seamless refunds. 
 
7. An income tax reference number 
You can't submit your IRP5/IT3(a) certificates to SARS unless you have a tax number for all your employees.
 
8. ID number 
You can't submit an EMP501 without an ID number. If there's no ID number, use your employees' passport number.
 
9. Tax directive numbers if your employee has one
You can issue IRP5/IT3(a) certificates containing information for all three types of directives. This means you don't have to complete a different IRP5/IT3(a).
 
Before you give your employees their tax certificates, ensure they contain all this information.
 
Check out the Practical Tax Loose Leaf Service for more about your tax certificate responsibilities as an employer. 
 


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