Tax Directive Enhancements

16 September 2022

SARS introduced validation processes for data captured on the tax directive application form against the information held by the Financial Sector Conduct Authority (FSCA). The following data will be validated:

• The registered fund name;
• Participating employer name; and
• FSCA registration numbers (participating employer number included) should be captured as it is on the FSCA data base.

Incorrect or omitted data will result in the tax directive applications being declined.

A new reason was added on the IRP3a for foreign companies not registered for PAYE making payments to South African tax residents who have performed work within South Africa. The following reasons can now be selected <Severance benefit – Paid by a non-resident Employer>:

• When the taxpayer/Tax Practitioner completes the return, a new field will be added on the ITR12 to cater for payments made by foreign entities. The taxpayer/Tax practitioner must select <Y>
• This will open a container whereby <new source code 3925) will be generated to capture the amount of the severance benefit received and the Tax Directive number which would have been issued for this purpose.

The following external guides were updated: Tax Directive for Emigration, Cease to be resident and Expiry of visas. You can find the guide here.

Guide to Complete the Tax Directive Application Forms. You can find the guide here.  

Guide to Complete Submit and Cancel a Recognition of Transfer. You can find the guide here.