“tax threshold” in relation to a natural person means the maximum amount of taxable income of that person in respect of a year of assessment which would result in no tax payable when the rates of tax contemplated in section 5 of this Act and the rebates contemplated in section 6 of this Act for that year of assessment are applied to the taxable income of that person;
Category: Fourth Schedule – Amounts to deducted or withheld by employers and provisional payments in respect of normal tax
FOURTH SCHEDULE
Fourth Schedule added by section 19 of Act 6 of 1963 and amended by section 16 of Act 140 of 1993, section 3 of Act 168 of 1993.
FIFTH SCHEDULE
Fifth Schedule amended by section 26 of Act 89 of 1969, ssection 50-51 of Act 88 of 1971, section 24-27 of Act 90 of 1972, ssection 58-62 of Act 85 of 1974, ssection 34-35 of Act 103 of 1976, section 18 of Act 101 of 1978, section 31 of Act 104 of 1980, ssection 31-32 of Act 91 of 1982, ssection 56-57 of Act 94 of 1983, ssection 46-47 of Act 97 of 1986 and section 58 of Act 59 of 2000 and repealed by section 58 of Act 8 of 2007.
Paragraph 15 (Fourth Schedule) – Registration of employers
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 29 (Fourth Schedule) – Refunds determined by Commissioner
29. No refund of any amount of employees’ tax or provisional tax shall be made to the taxpayer concerned otherwise than as provided in paragraph 28 or in such circumstances as may be determined by the Commissioner in any deduction tables prescribed by him or her under paragraph 9.
[Paragraph 29 substituted by section 57 of Act 85 of 1974, section 55 of Act 94 of 1983, section 43 of Act 90 of 1988, section 54 of Act 101 of 1990 and section 18 of Act 23 of 2015 effective on 1 March 2016]
PART II – Employees’ Tax
PART II
Employees’ Tax
PART III – Provisional Tax
PART III
Provisional Tax
Paragraph 30 (Fourth Schedule) – Offences
OFFENCES
30.
(1) Any person who—
(a) wilfully uses or applies any amount deducted or withheld by him or her by way of employees’ tax for purposes other than the payment of such amount to the Commissioner; or
(b) not being an employer and without being duly authorised by any person who is an employer, wilfully issues or causes to be issued any document purporting to be an employees’ tax certificate,
is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two years.
[Subparagraph (1) amended by section 45 of Act 21 of 1995, by section 44 of Act 53 of 1999, by section 271 read with paragraph 97(a)-(d) of Schedule 1 of Act 28 of 2011 and by section 19 of Act 23 of 2015 and substituted by section 8(a) of Act 24 of 2020]
(1A) Any person who—
(a) wilfully or negligently fails to deliver to any employee or former employee any employees’ tax certificate as required by paragraph 13;
(b) being a registered employer under paragraph 15(1), wilfully or negligently fails to notify the Commissioner of having ceased to be an employer as required by paragraph 15(3); or
(c) wilfully or negligently fails to submit to the Commissioner any estimate of his or her taxable income as required under paragraph 19,
is guilty of an offence and is liable, upon conviction, to a fine or to imprisonment for a period not exceeding two years,
[Subparagraph (1A) inserted by section 8(b) of Act 24 of 2020]
(2) For the purposes of item (a) of subparagraph (1) the person may, unless he or she proves a reasonable possibility that the amount was not so used or applied, be regarded as having used or applied the amount for purposes other than paying the amount to the Commissioner.
[Subparagraph (2) substituted by section 8(c) of Act 24 of 2020]
FIFTH SCHEDULE
Repealed
Paragraph 17 (Fourth Schedule) – Payment of provisional tax
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 3 (Fourth Schedule) – Liability of any employer to deduct or withhold any amount of employees’ tax
3.
(1) The liability of any employer to deduct or withhold any amount of employees’ tax in terms of paragraph 2 shall not be reduced or extinguished by reason of the fact that the employer has a right or is otherwise than in terms of any law under an obligation to deduct or withhold any other amount from the employees’ remuneration, and such right or obligation shall notwithstanding anything to the contrary in any other law contained, for all purposes be deemed to have reference only to the amount of the remuneration remaining after the amount of employees’ tax referred to in that paragraph has been deducted or withheld.
(2) The provisions of paragraph 2 shall apply in respect of all amounts payable by way of remuneration, notwithstanding the provisions of any law which provide that any such amount shall not be reduced or shall not be subject to attachment.
Paragraph 18 (Fourth Schedule) – Exemptions
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 4 (Fourth Schedule) – Debt due to the State
4. Any amount required to be deducted or withheld in terms of paragraph 2 shall be a debt due to the State and the employer concerned shall save as otherwise provided be absolutely liable for the due payment thereof to the Commissioner.