PAYE 19.6 Analysis

UAT Release Date: as per SARS trade-testing date (Not yet known)

Production Release Date: as per SARS go-live date  (Not yet known)


FEATURES / ENHANCEMENTS


The below outlines the changes that ebTax will apply to align itself to the PAYE BRS (v19.6) distributed by SARS. 



IRP5/IT3a


Representative Employer:


Validation Change

Code

Field Name

New Rule

2027

Contact E-mail address

The following characters are NOT allowed:

  • Open bracket ( 
  • Close bracket )| 
  • Back slash \ 
  • Inverted commas “ 
  • Pipe | 
  • Percentage %
3010Certificate NumberMUST ONLY contain the following characters:
  • Alphabet A until Z (Upper Case) 
  • Numbers 0 to 9


Changes not to be Implemented

Code

Field Name

Change

Reason for not implementing

3010Certificate Number
  • MUST ONLY contain the following characters:
    • Alphabet A until Z (Upper Case) 
    • Numbers 0 to 9
  • The certificate number must be unique per employee and must never be reused in any prior or current year.
  • The last 14 digits for the same individual need not be the same for the final certificate as it was for the interim certificate. These digits can be the same if the 2 digits indicating the period of recon are different.
  • If a final certificate is issued during the year, then 02 must be used for the digits indicating the reconciliation period.
  • Where a final certificate was issued in the bi-annual submission, the full year certificate must have the same certificate number.
ebTax already caters for this
3026ETI (Employer Trade Classification) Indicator
  • Same validation rewritten to make more sense
ebTax already caters for this


Taxpayer:


Validation Change

Code

Field Name

New Rule

3125

Employee E-mail address

The following characters are NOT allowed:

  • Open bracket ( 
  • Close bracket )| 
  • Back slash \ 
  • Inverted commas “ 
  • Pipe | 
  • Percentage %
3160Employee NumberThe employee number must be unique per employee


Directive Information: 


Validation Change

Code

Field Name

New Rule

3230

Directive Number

  • Up to 5 directives can be included per certificate


Changes not to be Implemented

Code

Field Name

Change

Reason for not implementing

3230Directive Number

If the directive number is less than 15 characters, the field can be padded to the left with zeros.

ebTax already caters for this


New Fields

NameCodeDescriptionLengthValidation
Directive Issue Date3231The date the directive was issued by SARSN8
  • Conditional: 
    • If Directive Number is completed, then Directive issued date is mandatory; 
    • If Directive Number is not completed, the Directive issued date must not be completed; 
  • Must consists of 8 numeric characters; 
  • Format: CCYYMMDD 
  • Only applicable from 2022 YoA
Directive Income Source Code3232The specific income source code indicated on the directive issuedN4
  • Conditional: 
    • If Directive Number is completed, then Directive Income Source Code is mandatory;
    • If Directive Number is not completed, the Directive Income Source Code must not be completed;
  • The Directive Income Source code can only be one of the following source codes: 
    • 3608/3658,
    • 3614/3664, 
    • 3901/3951,
    • 3902/3952,
    • 3903/3953, 
    • 3904/3954, 
    • 3905/3955, 
    • 3907/3957, 
    • 3908, 
    • 3909, 
    • 3915, 
    • 3920, 
    • 3921, 
    • 3922, 
    • 3923, 
    • 3924 
    • 3707/3757, 
    • 3718/3768, 
    • 3719/3769, 
    • 3720/3770, 
    • 3721/3771, 
    • 3723/3773  
  • The Directive Income Source code must be listed as an Income Source Code; 
  • Only applicable from 2022 YoA
Directive Income Amount3233The value of the lump sum or taxable benefit as per the directive issuedN15
  • Conditional: 
    • If Directive Number is completed, then Directive Income amount is mandatory; 
    • If Directive Number is not completed, the Directive Income amount must not be completed; 
  • Only applicable from 2022 YoA


Remuneration Information:


Validation Change

Code

Field Name

New Rule

4115

PAYE on Retirement Lumpsum and Severance Benefits

  • If the only value completed is for code 3901 and certificate type (code 3015) is IRP5, then code 4115 must be greater than zero;



EMP501 Reports


Changes to be implemented

Code Field Name Change 
4118Employment Tax Incentive (ETI)Conditional –
  • If Certificate has ETI (code 3026) is populated with a “N” or is not completed, then this field must not be completed.
7006MonthIf Code 3026 is populated with “N” or is not completed, then this field must not be completed;
7005ETI qualifying 12 month cycle indicatorIf Code 3026 is populated with “N” or not completed, this field must not be completed;


Changes not to be Implemented

Code

Field Name

Change

Reason for not implementing

2035Employer Trade Classification

Conditional:

  • If YoA Transaction Year is prior to 2021, then this field is mandatory; 

  • From 2021 YoA Transaction Year, this field must not be completed;

ebTax already caters for this
7005ETI qualifying 12 month cycle indicatorData for a full period of reconciliation must be submitted.To date, no PAYE certificates have been submitted containing ETI data and will be expanded at a later stage.
7002Remuneration PaidIf Code 7005 is 0, then this field may be equal to zero (0.00);To date, no PAYE certificates have been submitted containing ETI data and will be expanded at a later stage.
7004Monthly Calculated ETIRemoved: If Code 7005 is 1, 2 or 3, then this field MAY be greater than zero;
Data for a full period of reconciliation must be submitted.
To date, no PAYE certificates have been submitted containing ETI data and will be expanded at a later stage. 



Directives


Fund - Representative Employer:


Validation Change

Code

Field Name

New Rule

2027

Contact E-mail address

The following characters are NOT allowed:

  • Open bracket ( 
  • Close bracket )| 
  • Back slash \ 
  • Inverted commas “ 
  • Pipe | 
  • Percentage %



Source Code Changes


Changes not to be Implemented

Code DescriptionExplanationReason for not implementing 
3713 (3763)Other allowances (PAYE)

All other allowances, which do not comply with any of the descriptions listed under allowances, must be added together and reflected under this code on the certificate.

Examples include: 

  • If the employee acquires a meal for R50, and the employer reimburses the employee upon submission of a receipt for R50, no tax implication. This amount is not remuneration. There is no disclosure requirement for this on the IRP5/IT3(a) certificate.
  • Any subsistence allowances/advances paid to an employee during any month which is deemed to be remuneration by the end of the next month due to the employee not spending the night away from his/her residence or has not refunded the allowance/advance to the employer.
  • Entertainment allowance
  • Tool allowance
  • Computer allowance
  • Telephone allowance
  • Cell phone allowance
  • Housing allowance
  • Taxable Uniform allowance
  • Taxable Relocation allowance, etc.

Note:

  • Code 3763 MUST only be used for foreign service income.
  • With effect from 2010 year of assessment, amounts previously included under codes 3706/3756, 3710/3760, 3711/3761 and 3712/3762 must be included in this code (3713/3763).

Descriptive change
4587

Section 10(1)(o)(ii) exemption taken into account by the employer for PAYE purposes

Note:


Basic Principles:

  1. The exemption remains an assessment determination by SARS (i.e. when the completed ITR12 return is submitted by the employee to, and processed by, SARS).
  2. Employers are therefore required to declare the foreign service remuneration as per the SARS Business Requirements Specification: PAYE Employer Reconciliation or notices issued to employers in this regard. SARS will determine whether the exemption is allowable when processing the ITR12 return submitted to SARS by the employee based on the information provided in the ITR12 return together with the IRP5/IT3(a) certificate information submitted by the employer.
  3. The possibility that the employee may qualify for the exemption does not automatically waive the obligation of an employer to deduct and pay PAYE. Where an employer is satisfied that the exemption will apply, the employer may choose not to deduct and pay PAYE. However, where the exemption is not allowed when the ITR12 of the employee is processed, the employer will be liable for the PAYE not deducted as well as the concomitant penalties and interest.
  4. The following foreign service income source codes are included in the remuneration which qualifies for the s10(1)(o)(ii) exemption and which employers may take into account for calculating PAYE, if all requirements are met:
  • Income Source codes - 3651, 3655, 3656, 3657 
  • Allowance codes – 3751 (the full amount must be included), 3763, 3767, 3768, 3772
  • Fringe Benefit codes – 3851, 3852, 3855, 3856, 3858, 3859, 3860, 3863, 3866 (the full amount must be included), 3867, 3870, 3875, 3878, 3879, 3881, 3883
Descriptive change
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