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Paragraph 19 (Fourth Schedule) – Estimates of taxable income to be made by provisional taxpayers

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19.     ESTIMATES OF TAXABLE INCOME TO BE MADE BY PROVISIONAL TAXPAYERS

(1)

(a)     Every provisional taxpayer (other than a company) shall, during every period within which provisional tax is or may be payable by that provisional taxpayer as provided in this Part, submit to the Commissioner (unless the Commissioner directs otherwise) a return of an estimate of the total taxable income which will be derived by the taxpayer in respect of the year of assessment in respect of which provisional tax is or may be payable by the taxpayer: Provided that-

(i)      such estimate will not include any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or any severance benefit received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment; and

(ii)     in respect of the year of assessment in which a person dies, no estimate is required to be made in respect of the period ending on the date of death of that person.

[Item (a) substituted by section 54(1)(a) of Act 31 of 2005, by section 271 read with paragraph 90(a) of Sch. 1 of Act 28 of 2011, by section 22 of Act 21 of 2012 and by section 16(a) of Act 23 of 2015 and amended by section 10 of Act 33 of 2019]

(b)     Every company which is a provisional taxpayer shall, during every period within which provisional tax is or may be payable by it as provided in this Part submit to the Commissioner (unless the Commissioner directs otherwise) a return of an estimate of the total taxable income which will be derived by the company in respect of the year of assessment in respect of which provisional tax is or may be payable by the company.

[Item (b) substituted by section 49 of Act 94 of 1983, section 271 of Act 28 of 2011 effective on 1 October 2012 and section 16 of Act 23 of 2015 effective on 8 January 2016]

(c)     The amount of any estimate so submitted by a provisional taxpayer (other than a company) during the period referred to in paragraph 21(1)(a), or by a company (as a provisional taxpayer) during the period referred to in paragraph 23(1)(a), shall not be less than the basic amount applicable to the estimate in question, as contemplated in item (d), unless the circumstances of the case justify the submission of an estimate of a lower amount.

[Item (c) substituted by section 49(b) of Act 94 of 1983, by section 271 read with paragraph 90(c) of Schedule 1 of Act 28 of 2011, by section 16(a) of Act 23 of 2015 and by section 4 of Act 43 of 2024]

 

(d)     The basic amount applicable to any estimate submitted by a provisional taxpayer under this paragraph shall, for the purposes of this paragraph, be deemed to be-

 

(i)      as respects an estimate submitted by a provisional taxpayer (other than a company) under item (a), the taxpayers’ taxable income, as assessed by the Commissioner, for the latest preceding year of assessment in relation to such estimate, less –

 

(aa)    the amount of any taxable capital gain contemplated in section 26A;

[Item (aa) amended by section 46 of Act 3 of 2008 and section 13 of Act 39 of 2013 and substituted by section 9 of Act 44 of 2014 effective on 1 March 2015]

(bb)   the taxable portion of any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or severance benefit (other than any amount contemplated in paragraph (eA) of the definition of ‘gross income’ in section 1); and

[Item (bb) amended by section 46 of Act 3 of 2008 and substituted by section 271 of Act 28 of 2011, section 13 of Act 39 of 2013 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(bbA) any amount (other than a severance benefit) contemplated in paragraph (d) of the definition of ‘gross income’ in section 1,

[Item (bbA) added by section 9 of Act 44 of 2014 effective on1 March 2015]

included in the taxpayer’s taxable income for that year of assessment;

[Words following item (bbA) added by section 9 of Act 44 of 2014 effective on 1 March 2015]

 

(ii)     as respects an estimate submitted by a company under item (b), the company’s taxable income, as assessed by the Commissioner, for the latest preceding year of assessment in relation to such estimate, less the amount of any taxable capital gain included therein in terms of section 26A.

 

: Provided that, if an estimate under item (a) or (b) must be made  more than 18 months after the end of the latest preceding year of assessment in relation to such estimate, the basic amount determined in terms of subitems (i) and (ii) shall be increased by an amount equal to eight per cent per annum of that amount, from the end of such year to the end of the year of assessment in respect of which the estimate is made.

[Proviso to item (d) added by section 23 of Act 18 of 2009 and substituted by section 271 of Act 28 of 2011 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(e)     For the purposes of item (d), the latest preceding year of assessment in relation to any estimate under this paragraph shall be deemed to be the latest of the years of assessment –

 

(i)      preceding the year of assessment in respect of which the estimate is made; and

 

(ii)     in respect of which a notice of assessment relevant to the estimate has been issued by the Commissioner not less than 14 days before the date on which the estimate is submitted to the Commissioner.

[Subitem (ii) amended by section 52 of Act 101 of 1990, section 87 of Act 45 of 2003, section 271 of Act 28 of 2011 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(2)     If any provisional taxpayer fails to submit any estimate as required by subparagraph (1), the Commissioner may estimate the taxable income which is required to be estimated.

(3)     The Commissioner may call upon any provisional taxpayer to justify any estimate made by the provisional taxpayer in terms of sub-paragraph (1), or to furnish particulars of  the provisional taxpayer’s income and expenditure or any other particulars that may be required, and, if the Commissioner is dissatisfied with the said estimate, he or she may increase the amount thereof to such amount as he or she considers reasonable, which increase of the estimate is not subject to objection and appeal.

[Subparagraph (3) substituted by section 271 of Act 28 of 2011 effective on 1 October 2012 and section 16 of Act 23 of 2015 effective on 8 January 2016]

(4)          ……….

(5)     Any estimate or increase made by the Commissioner under the provisions of sub-paragraph (2) or (3) shall be deemed to take effect in respect of the relevant period within which the provisional taxpayer is required to make any payment of provisional tax in terms of this Part.

[Subparagraph (5) substituted by section 16 of Act 23 of 2015 effective on 8 January 2016]

(6)     Subject to subparagraph (2), if an estimate of a provisional taxpayer’s taxable income in respect of any year of assessment is not submitted in terms of subparagraph (1)(a) or (b) by the last day of a period of four months after the last day of the year of assessment, the provisional taxpayer shall, for the purposes of this paragraph and paragraph 20, be deemed to have submitted an estimate of an amount of nil taxable income.

[Sub-paragraph (6) added by section 12 of Act 16 of 2016]

Paragraph 18 (Fourth Schedule) – Exemptions

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18. ………….

[Paragraph 18 amended by section 28 of Act 90 of 1964, section 42 of Act 88 of 1971, section 49 of Act 85 of 1974, section 19 of Act 104 of 1979, section 26 of Act 65 of 1986, section 9 of Act 108 of 1986, section 23 of Act 70 of 1989, section 50 of Act 113 of 1993, section 37 of Act 36 of 1996, section 24 of Act 19 of 2001, section 34 of Act 30 of 2002, section 58 of Act 74 of 2002, section 24 of Act 16 of 2004, section 47 of Act 32 of 2004, section 53 of Act 31 of 2005, section 2 of Act 8 of 2007, section 1 of Act 3 of 2008, section 22 of Act 18 of 2009, section 96 of Act 24 of 2011, section 271 of Act 228 of 2011, section 21 of Act 21 of 2012 and section 8 of Act 44 of 2014, deleted by section 15 of Act 23 of 2015 effective on 8 January 2016]

Paragraph 17 (Fourth Schedule) – Payment of provisional tax

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17.     PAYMENT OF PROVISIONAL TAX

(1)     Every provisional taxpayer shall in the manner provided in this Part make payments (called provisional tax) to the Commissioner in respect of his liability for normal tax in respect of every year of assessment.

(2)     ……….

 

(3)     Where for the purpose of determining any amount of provisional tax required to be paid by any provisional taxpayer in respect of any year of assessment the liability of such taxpayer for normal tax is required to be estimated in respect of such year, such liability shall be deemed to be the amount of normal tax which, calculated at the relevant rate referred to in subparagraph (4), would be payable by the provisional taxpayer in respect of the amount of taxable income estimated by such taxpayer in terms of paragraph 19 (1) during the period prescribed by this Schedule for the payment of the said amount of provisional tax or if the amount so estimated has been increased by the Commissioner in terms of paragraph 19(3), the amount of normal tax which, calculated at the said rate, would be payable by the provisional taxpayer in respect of the amount of taxable income as so increased, or if the Commissioner has estimated the provisional taxpayer’s taxable income in terms of paragraph 19(2), the amount of normal tax which, calculated at the said rate, would be payable by the provisional taxpayer in respect of the amount of taxable income so estimated.

[Subparagraph (3) substituted by section 41 of Act 88 of 1971 and section 14 of Act 23 of 2015 effective on 8 January 2016]

(4)     For the purposes of any calculation of normal tax under subparagraph (3) the rate at which such tax is to be calculated shall be the relevant rate which on the date of payment of the provisional tax in question is in force in respect of the year of assessment in respect of which such provisional tax is required to be paid under this Schedule, or if at the said date the rate has not been fixed, the relevant rate in respect of that year foreshadowed by the Minister of Finance in his budget statement, or if at that date the rate has not been fixed or so foreshadowed, the relevant rate which is in force in respect of the latest preceding year of assessment in respect of which rates have been fixed by Parliament.

(5)     The Commissioner may from time to time, having regard to the rates of normal tax as fixed by Parliament or foreshadowed by the Minister in his or her budget statement or  to the rebates applicable in terms of section 6(2) of this Act and taking into account any other factors having a bearing upon the probable liability of taxpayers for normal tax, prescribe tables for optional use by provisional taxpayers falling within any category specified by the Commissioner, or by provisional taxpayers generally, for the purpose of estimating the liability of such taxpayers for normal tax, and the Commissioner may prescribe the manner in which such tables shall be applied together with the period for which such tables shall remain in force.

(6)     ……….

(7)     The provisions of subparagraphs (3) and (4) shall not apply where the liability of a provisional taxpayer for normal tax is estimated in accordance with any tables prescribed for his use under the provisions of subparagraph (5) and not withdrawn under the provisions of subparagraph (6).

(8)       ……….

[Subparagraph (8) added by section 51 of Act 101 of 1990, substituted by section 271 of Act 28 of 2011 effective on 1 October 2012, deleted by section 14 of Act 23 of 2015 effective on 8 January 2016]

Paragraph 15 (Fourth Schedule) – Registration of employers

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15.       REGISTRATION OF EMPLOYERS

 

(1)     Every person who is an employer shall apply to the Commissioner in accordance with Chapter 3 of the Tax Administration Act for registration: Provided that where no one of such employer’s employees is liable for normal tax, the provisions of this paragraph shall not apply to such employer.

 

(2)     ……….

 

(3)     Every person who is registered as an employer shall within 14 days after ceasing to be an employer, notify the Commissioner in writing of the fact of the employer having ceased to be an employer.

 

(4)     ……….

 

16.       ……….

Paragraph 14 (Fourth Schedule) – Employer to keep records and furnish returns

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14.       EMPLOYERS TO KEEP RECORDS AND FURNISH RETURNS

(1)     In addition to the records required in accordance with Part A of Chapter 4 of the Tax Administration Act, every employer shall in respect of each employee maintain a record showing-

(a)     the amounts of remuneration paid or due by him or her to such employee;

(b)     the amount of employees’ tax deducted or withheld from the amounts of remuneration contemplated in item;

(c)     the income tax reference number of that employee where that employee is registered as a taxpayer in terms of section 67; and

(d)     such further information as the Commissioner may prescribe,

and such record shall be retained by the employer and shall be available for scrutiny by the Commissioner.

(2)     Every employer shall when making any payment of employees’ tax submit to the Commissioner a return.

(3)     Every employer shall –

(a)     by such date or dates as prescribed by the Commissioner by notice in the Gazette; and

(b)     if the employer ceases to carry on any business or other undertaking in respect of which the employer has paid or becomes liable to pay remuneration to any employee or otherwise ceases to be an employer, within 14 days after the date on which the employer has so ceased to carry on that business or undertaking or to be an employer, as the case may be,

or within such longer time as the Commissioner may approve, render to the Commissioner a return.

(4)     ……….

(5)     Unless the Commissioner otherwise directs, no employees’ tax certificate as contemplated in paragraph 13(2)(a) or (c) shall be delivered by the employer until such time as the return contemplated in subparagraph (3) has been rendered to the Commissioner.

[Subparagraph (5) added by section 22 of Act 4 of 2008, substituted by section 16 of Act 61 of 2008 effective on 29 August 2008 and section 13 of Act 23 of 2015 effective on 8 January 2016]

(6)     If an employer fails to render to the Commissioner a complete return referred to in subparagraph (3) within the period prescribed in that subparagraph , the Commissioner may impose on that employer a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, for each month that the employer fails to submit a complete return which, in total, may not exceed 10 per cent of the total amount of employees’ tax deducted or withheld, or which should have been deducted or withheld by the employer from the remuneration of employees for the period described in that subparagraph .

[Sub­paragraph (6) added by section 22(1)(b) of Act 4 of 2008 and substituted by section 22 of Act 8 of 2010, by section 271 read with paragraph 85(e) of Schedule 1 of Act 28 of 2011, by section 20 of Act 21 of 2012 and by section 9 of Act 33 of 2019]

(7)     If the total amount of employees’ tax deducted or withheld, or which should have been deducted or withheld for the period described in subparagraph (3), is unknown, the Commissioner may estimate the total amount based on information readily available and impose the penalty under subparagraph (6) on the amount so estimated.

[Subparagraph (7) added by section 7 of Act 21 of 2021]

(8)     Where, upon determining the actual employees’ tax of the person in respect of whom the penalty was imposed under subparagraph (7), it appears that the total amount of employees’ tax was incorrectly estimated under subparagraph (7), the penalty must be adjusted in accordance with the correct amount of employees’ tax effective on the date of the imposition of the penalty under subparagraph (6) read with subparagraph (7).

[Subparagraph (8) added by section 7 of Act 21 of 2021]

Paragraph 13 (Fourth Schedule) – Furnishing and obtaining of employees’ tax certificates

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13.       FURNISHING AND OBTAINING OF EMPLOYEES’ TAX CERTIFICATES

(1)     Subject to the provisions of paragraphs 5, 14(5) and 28, every employer who, during any period contemplated in subparagraph (1A), deducts or withholds any amount by way of employees’ tax as required by paragraph 2 shall, within the time allowed by subparagraph (2) of this paragraph, deliver to each employee or former employee to whom remuneration has during the period in question been paid or become due by such employer, an employees’ tax certificate in such form as the Commissioner may prescribe or approve, which shall show the total remuneration of such employee or former employee and the sum of the amounts of employees’ tax deducted or withheld by such employer from such remuneration during the said period, excluding any amount of remuneration or employees’ tax included in any other employees’ tax certificate issued by such employer, unless such other certificate has been cancelled by such employer.

[Subparagraph (1) amended by section 24(a) of Act 72 of 1963 and substituted by section 49(a) of Act 101 of 1990, by section 23(1) of Act 19 of 2001, by section 12(a) of Act 23 of 2015 and by section 7(a) of Act 24 of 2020]

(1A)  The period referred to in subparagraph (1) shall be the period of 12 months ending on the last day of February of any year or, at the option of the employer which may be exercised by him in relation to all his employees or any class of his employees, the period, whether of 12 months or not (to be known as an alternate period), commencing on the day following the last day of the preceding alternate period in relation to the employer and ending on a date falling not more than 14 days (or such greater number of days as the Commissioner having regard to the circumstances of the case may allow) before or after the last day of February of any year.

(1B)   Where any employer has in relation to any employee exercised an option as contemplated in subparagraph (1A), any remuneration which is paid or becomes payable to the employee by the employer during an alternate period shall for the purposes of this Act be deemed to have been paid or to have become payable to the employee during the year of assessment ended on the last day of February of the calendar year in which such alternate period ended.

(2)  The employees’ tax certificate referred to in sub–paragraph (1) shall be delivered –

 

(a)     if the employer who is required to deliver the certificate has not ceased to be an employer in relation to the employee concerned, within 60 days after the end of the period to which the certificate relates;

 

(b)     if the said employer has ceased to be an employer in relation to the employee concerned but has continued to be an employer in relation to other employees, within fourteen days of the date on which he has so ceased; or

 

(c)     if the said employer has ceased to be an employer, within 14 days of the date on which the employer has so ceased,

[Item (c) amended by section 24 of Act 72 of 1963 and substituted by section 12 of Act 23 of 2015 effective on 8 January 2016]

(3)     For the purposes of sub–paragraph (2) an employer shall, if the Commissioner having regard to the circumstances of the case so directs be deemed not to have ceased to be an employer in relation to any of his casual employees who is likely from time to time to be re–employed by such employer.

(4)     Notwithstanding the provisions of subparagraphs (1) and (2), any employer who has deducted or withheld employees’ tax from the remuneration of any employee shall, as and when required by the Commissioner, deliver to such employee an employees’ tax certificate in such form as the Commissioner may prescribe or approve, which shall show the total remuneration of such employee or former employee and the sum of the amounts of employees’ tax deducted or withheld by such employer from such remuneration during any period specified by the Commissioner, but excluding any amount of remuneration or employees’ tax included in any other employees’ tax certificate issued by such employer, unless such other certificate has been cancelled by such employer.

[Subparagraph (4) amended by section 24(a) of Act 72 of 1963 and substituted by section 7(b) of Act 24 of 2020]

(5)     It shall be the duty of any employee or former employee who has not received an employees’ tax certificate within the time allowed by sub–paragraph (2) forthwith to apply to the employer for such certificate.

(6)     ……….

(7)     It shall be sufficient compliance with the provisions of sub–paragraph (1) or (4) in regard to the delivery of any employee’s tax certificate to any employee or former employee if such certificate is delivered to the employees’ authorized agent or the representative taxpayer in respect of the remuneration shown in such certificate or, where delivery cannot conveniently be effected by personal delivery, if such certificate is sent to the employee or former employee or such agent or representative taxpayer.

(8)      . . . . . .

[Subparagraph (8) deleted by section 7(c) of Act 24 of 2020]

(9)      . . . . . .

[Subparagraph (9) deleted by section 7(c) of Act 24 of 2020]

(10)     . . . . . .

[Subparagraph (10) deleted by section 7(c) of Act 24 of 2020]

(11)     . . . . . .

[Subparagraph (11) deleted by section 7(c) of Act 24 of 2020]

(12)   ………..

(13)    . . . . . .

[Subparagraph (13) deleted by section 7(c) of Act 24 of 2020]

(14)     . . . . . .

[Subparagraph (14) deleted by section 7(c) of Act 24 of 2020]

(15)   For the purposes of this Schedule, any employees’ tax certificate on which appears the name or any trade name of any employer shall, until the contrary is proved, be deemed to have been issued by such employer if such certificate is in a form prescribed by the Commissioner.

[Subparagraph (15) amended by section 24(b) of Act 72 of 1963 and substituted by section 7(d) of Act 24 of 2020]

Paragraph 11C of Fourth Schedule – Deemed remuneration in respect of directors of private companies

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11C.     . . . . . .

[Paragraph 11C inserted by section 22(1) of Act 19 of 2001, amended by section 85(1) of Act 45 of 2003, by section 271 read with paragraph 83 of Schedule 1 of Act 28 of 2011, by section 10 of Act 39 of 2013 and by section 11 of Act 23 of 2015 and repealed by section 11(1) of Act 16 of 2016 effective on 1 March, 2017 and applicable in respect of years of assessment commencing on or after that date]

12.       . . . . . .

Paragraph 11B (Fourth Schedule) – Standard Income Tax on Employees (SITE)

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STANDARD INCOME TAX ON EMPLOYEES



11B.    ……….

[Paragraph 11B inserted by section 41 of Act 90 of 1988, amended by section 22 of Act 70 of 1989, section 47 of Act 101 of 1990, section 46 of Act 129 of 1991, section 34 of Act 141 of 1992, section 3 of Act 168 of 1993, section 40 of Act 21 of 1995, section 35 of Act 36 of 1996, section 48 of Act 28 of 1997, section 53 of Act 30 of 1998, section 56 of Act 59 of 2000, section 33 of Act 30 of 2002, section 56 of Act 74 of 2002, section 22 of Act 16 of 2004, section 43 of Act 20 of 2006, section 2 of Act 8 of 2007, section 57 of Act 8 of 2007, section 1 of Act 3 of 2008,  section 44 of Act 3 of 2008, section 70 of Act 60 of 2008, section 20 of Act 8 of 2010, section 271 of Act 28 of 2011,  section 9 of Act 39 of 2013, repealed by section 10 of Act 23 of 2015 effective on 1 March 2016]