Tag: pay as you earn (PAYE)

The South African Revenue Service (SARS) has signalled a stronger focus on Pay-As-You-Earn (PAYE) compliance. Furthermore, SARS PAYE compliance focus is highlighted in its 2023/24 Annual Report. SARS's renewed attention includes a rigorous auditing strategy targeting employers. The aim is to ensure PAYE is accurately held and remitted.

Paying employees sounds straightforward, but it is not unusual for Small and Medium Enterprises (SMEs) to make mistakes in managing their payroll. These errors can have serious consequences, ranging from damaging employee morale to fraud losses, and tax penalties for late or incorrect tax payments and submissions.

The draft tax law amendment published in August and targeting foreign employers has inadvertently led to an uproar amongst South African remote workers who fear the law change may disincentivise foreign employers from retaining the services of South African talent.

South Africa remains a hot spot for remote work. On the one hand, digital nomads and remote workers with foreign employers get to enjoy the South African lifestyle, good weather, and the luxury of earning Dollars and Pounds. On the other, foreign companies benefit from employing skilled South Africans, comparatively cheaper than their foreign counterparts, and without the burden of adhering to South African tax compliance regulations.

On 31 July 2023, National Treasury released their annual draft tax law amendments, for public comment. Although still at the draft stage, there are some pertinent proposed changes for which the supporting systems have already been implemented i.e., the “Beneficial Ownership Registers”.

Gazetted in February 2022, the latest Critical Skills List added numerous skills that have been in short supply in South Africa for some time. The list was previously updated back in 2014. As world economies reopen, local enterprises can finally source expatriate talent to fill the persistent skills gaps keeping them from achieving their strategic objectives.

Most employees break out into a cold sweat when they see the PAYE amount on their payslips, not to mention that they are petrified in trying to understand these calculations. With some basic professional training with practical examples, understanding the basics of tax can easily be learnt with basic arithmetic.

The South African Revenue Service (SARS) has announced the deadline dates for filing income tax returns for the 2022 year of assessment as well as the details of those exempt from filing returns. On 3 June 2022, SARS will publish a notice in the Government Gazette specifying the taxpayers that do not need to file income tax returns for the 2022 year of assessment, and the deadlines for taxpayers that have to file an income tax return.

South Africa’s finance minister Mr. Enoch Godongwana presented the 2022/2023 Budget Speech on 23 February, announcing a few changes that, from a legislative perspective, payroll managers need to know about to remain compliant.

Introducing a new approach to SME lending – a revolutionary short-term loan that links repayment terms to daily business revenue. When it comes to running a business in today’s disruptive and unpredictable environment, it’s never been more important for entrepreneurs to read the signs and respond accordingly, by adapting their strategies with out-of-the-box thinking and lightning-fast execution.