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Act 91 of 1982, ssection 56-57 of Act 94 of 1983, ssection 46-47 of Act 97 of 1986 and section 58 of Act 59 of 2000 and repealed by section 58 of Act 8 of 2007.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 23A (Fourth Schedule) – Additional provisional tax payments

Posted on October 15, 2015January 14, 2017 by admin_kmos

23A. ADDITIONAL PROVISIONAL TAX PAYMENTS

(1) Any provisional taxpayer may for the purpose of avoiding or reducing his liability for any interest which may become payable by him in respect of any year of assessment under section 89quat, elect to make an additional payment of provisional tax in respect of such year.

(2) If any additional payment of provisional tax contemplated in subparagraph (1) is paid after the end of the period ending on the effective date in relation to the said year as determined under section 89quat(1), such payment shall be deemed for the purposes of section 89bis(2) to be an amount of provisional tax which was payable within the said period.

Paragraph 11 (Fourth Schedule) – Issue of directive by Commissioner

Posted on October 15, 2015September 7, 2024 by admin_kmos

11. The Commissioner may, having regard to the circumstances of the case, issue a directive-

(a) to an employer authorising that employer-

(i) to refrain from deducting or withholding any amount under paragraph 2 by way of employees’ tax from any remuneration due to any employee of that employer; or

(ii) to deduct or withhold by way of employees’ tax from any remuneration in terms of paragraph 2, a specified amount or an amount to be determined in accordance with a specified rate or scale,

in order to alleviate hardship to that employee due to circumstances outside the control of the employee or to correct any error in regard to the calculation of employees’ tax, or in the case of remuneration constituting commission or where the remuneration is paid or payable to a personal service provider and that directive must be complied with.

[Subparagraph (a) amended by section 42 of Act 20 of 2006, by section 69(1) of Act 60 of 2008 and by section 20 of Act 20 of 2022]

(b) . . . . . .

[Paragraph 11 substituted by section 39 of Act 21 of 1995 and by section 84 of Act 45 of 2003. Sub-paragraph (b) deleted by section 9(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]

Paragraph 24 (Fourth Schedule) – Determination by Commissioner if estimation cannot be made

Posted on October 15, 2015January 13, 2024 by admin_kmos

24. The Commissioner may absolve any provisional taxpayer from making payment of any amount of provisional tax payable in terms of paragraph 21(1)(a) or paragraph 23(1)(a), if the Commissioner is satisfied that the taxable income which may be derived by such taxpayer for the year of assessment in question cannot be estimated on the facts available at the time when payment of the amount in question has to be made.

[Paragraph 24 amended by section 27 of Act 72 of 1963 and substituted by section 30(1) of Act 88 of 1965, by section 54 of Act 85 of 1974, by section 52 of Act 94 of 1983, by section 12 of Act 44 of 2014 and by section 6 of Act 16 of 2022]

“Personal service provider” definition of Fourth Schedule

Posted on October 15, 2015December 6, 2017 by admin_kmos

“personal service provider” means any company or trust, where any service rendered on behalf of such company or trust to a client of such company or trust is rendered personally by any person who is a connected person in relation to such company or trust, and-

(a) such person would be regarded as an employee of such client if such service was rendered by such person directly to such client, other than on behalf of such company or trust; or

(b) where those duties must be performed mainly at the premises of the client, such person or such company or trust is subject to the control or supervision of such client as to the manner in which the duties are performed or are to be performed in rendering such service; or

(c) where more than 80 per cent of the income of such company or trust during the year of assessment, from services rendered, consists of or is likely to consist of amounts received directly or indirectly from any one client of such company or trust, or any associated institution as defined in the Seventh Schedule to this Act, in relation to such client,

except where such company or trust throughout the year of assessment employs three or more full-time employees who are on a full-time basis engaged in the business of such company or trust of rendering any such service, other than any employee who is a holder of a share in the company or settlor or beneficiary of the trust or is a connected person in relation to such person;

[Words following paragraph (c) substituted by section 7 of Act 39 of 2013 effective on 1 January 2014 and section 6 of Act 23 of 2015 effective on 8 January 2016]

Paragraph 11A (Fourth Schedule) – Employees’ tax on certain amounts included as remuneration

Posted on October 15, 2015September 7, 2024 by admin_kmos

11A.

(1) Where by virtue of the provisions of paragraph (b), (d), (e) or (g) of the definition of ‘remuneration’ in paragraph 1, the remuneration of an employee includes-

(a) any gain made by the exercise, cession or release of any right to acquire any marketable security as contemplated in section 8A;

(b) any gain made from the disposal of any qualifying equity share as contemplated in section 8B;

(d) any amount received by or accrued to that employee by way of a dividend contemplated in-

(i) paragraph (dd) of the proviso to section 10(1)(k)(i);

(ii) paragraph (ii) of the proviso to section 10(1)(k)(i);

(iii) paragraph (jj) of the proviso to section 10(1)(k)(i); or

(iv) paragraph (kk) of the proviso to section 10(1)(k)(i),

the person by whom that right was granted or from whom the equity instrument or qualifying equity share that gave rise to the gain or amount was acquired, as the case may be, is deemed to be a person who pays or is liable to pay to that employee the amount of the gain referred to in paragraph (a) or (b) or the amount referred to in paragraph (c) or (d).

[Subparagraph (1) substituted by section 10 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(2) Employees’ tax in respect of the amount of remuneration contemplated in subparagraph (1) must, unless the Commissioner has granted authority to the contrary, be deducted or withheld by the person referred to in subparagraph (1) from-

(a) any consideration paid or payable by that person to that employee in respect of the cession, or release of that right or the disposal of that qualifying equity share, as the case may be;

(b) any cash remuneration paid or payable by that person to that employee after that right has to the knowledge of that person been exercised, ceded or released or that equity instrument has to the knowledge of that person vested or that qualifying equity share has to the knowledge of that person been disposed of; or

Provided that where that person is an ‘associated institution’, as defined in paragraph 1 of the Seventh Schedule, in relation to any employer who pays or is liable to pay to that employee any amount by way of remuneration during the year of assessment during which the gain contemplated in subparagraph (1)(a) or (b) or the amount contemplated in subparagraph (1)(c) or (d) arises, and-

(i) that person is not resident nor has a representative employer;

(ii) that person is unable to deduct or withhold the full amount of employees’ tax during the year of assessment during which the gain or the amount arises, by reason of the fact that the amount to be deducted or withheld from that remuneration by way of employees’ tax exceeds the amount from which the deduction or withholding can be made; or

(iii) the amount of the dividend referred to in paragraph (c) consists of an equity instrument referred to in section 8C,

that person and that employer must deduct or withhold from the remuneration payable by them to that employee during that year of assessment an aggregate amount equal to the employees’ tax payable in respect of that gain or that amount and shall be jointly and severally liable for that aggregate amount of employees’ tax.

[Subparagraph (2) substituted by section 10 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(3) The provisions of this Schedule apply in relation to the amount of employees’ tax deducted or withheld under subparagraph (2) as though that amount had been deducted or withheld from the amount of the gain referred to in subparagraph (1)(a) or (b) or the amount referred to in subparagraph (1)(c) or (d).

[Subparagraph (3) substituted by section 10 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(4) Before deducting or withholding employees’ tax under subparagraph (2) in respect of remuneration contemplated in subparagraph (1)(a), (c) or (d), that person and that employer must ascertain from the Commissioner the amount to be so deducted or withheld.

[Subparagraph (4) substituted by section 10 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(5) If that person and that employer are, by reason of the fact that the amount to be deducted or withheld by way of employees’ tax exceeds the amount from which the deduction or withholding is to be made, unable to deduct or withhold the full amount of employees’ tax during the year of assessment during which the gain referred to in subparagraph (1)(a) or (b) or the amount referred to in subparagraph (1)(c) or (d) arises, they must immediately notify the Commissioner of the fact.

[Subsection (5) substituted by section 10 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(6) Where an employee has-

(a) under any transaction to which neither that person nor that employer is a party made any gain; or

(b) disposed of any qualifying equity share as contemplated in subparagraph (1),

that employee must immediately inform that person and that employer of the transaction or the disposal and of the amount of that gain.

(7) Any employee who, without just cause shown by him or her, fails to comply with the provisions of subparagraph (6) shall be guilty of an offence and liable on conviction to a fine not exceeding R2 000.

[Paragraph 11A inserted by section 45 of Act 89 of 1969, amended by section 47 of Act 28 of 1997, substituted by section 19 of Act 34 of 2004, amended by section 51 of Act 31 of 2005, section 67 of Act 35 of 2007, section 19 of Act 8 of 2010 and section 9 of Act 23 of 2015 and substituted by section 10 of Act 16 of 2016 effective on 19 January 2017]

Paragraph 25 (Fourth Schedule) – Extension of time for payment of provisional tax

Posted on October 15, 2015January 14, 2017 by admin_kmos

25. EXTENSION OF TIME FOR PAYMENT OF PROVISIONAL TAX

(1) If after the end of any period within which provisional tax is payable in terms of this Schedule the Commissioner has under the provisions of sub–paragraph (3) of paragraph 19 increased the amount of any estimate of taxable income submitted by any provisional taxpayer during such period, any additional provisional tax payable as a result of the Commissioner having made such increase shall, notwithstanding the provisions of paragraphs 21, and 23, be payable within such period as the Commissioner may determine.

26. ……….

“Provisional tax” definition of Fourth Schedule

Posted on October 15, 2015December 6, 2017 by admin_kmos

“provisional tax” means any payment in respect of liability for normal tax required to be made in terms of paragraph 17;

[Definition of “provisional tax” substituted by section 6 of Act 23 of 2015 effective on 8 January 2016]

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

Posted on October 15, 2015December 6, 2017 by admin_kmos

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]

Paragraph 27 (Fourth Schedule) – Penalty on late payment of provisional tax

Posted on October 15, 2015January 14, 2017 by admin_kmos

27. PENALTY ON LATE PAYMENT OF PROVISIONAL TAX

(1) If any provisional taxpayer fails to pay any amount of provisional tax for which he or she is liable within the period allowed for payment thereof in terms of paragraph 21 or 23, or paragraph 25 (1), the Commissioner must, under Chapter 15 of the Tax Administration Act, impose a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to ten per cent of the amount not paid.

“Provisional taxpayer” definition of Fourth Schedule

Posted on October 15, 2015February 5, 2022 by admin_kmos

“provisional taxpayer” means –

(a) any person (other than a company) who derives income by way of-

(i) any remuneration from an employer that is not registered in terms of paragraph 15; or

(ii) any amount which does not constitute remuneration or an allowance or advance contemplated in section 8(1);

[Paragraph (a) substituted by section 5 of Act 16 of 2016 and section 8 of Act 13 of 2017 effective on 1 March 2017 and applies in respect of years of assessment commencing on or after that date]

(b) any company; and

but shall exclude –

(aa) any public benefit organisation as contemplated in paragraph (a) of the definition of ‘public benefit organisation’ in section 30(1) that has been approved by the Commissioner in terms of section 30(3);

(bb) any recreational club as contemplated in the definition of ‘recreational club’ in section 30A(1) that has been approved by the Commissioner in terms of section 30A(2);

[Paragraph (bb) amended by section 7 of Act 44 of 2014 effective on 1 March 2015]

(cc) any body corporate, share block company or association of persons contemplated in section 10(1)(e);

(dd) any-

(A) person in respect of whose liability for normal tax for the relevant year of assessment payments are required to be made under section 33;

(B) natural person who does not derive any income from the carrying on of any business, if-

(AA) the taxable income of that person for the relevant year of assessment does not exceed the tax threshold; or

(BB) the taxable income of that person for the relevant year of assessment which is derived from interest, dividends, foreign dividends, rental from the letting of fixed property and any remuneration from an employer that is not registered in terms of paragraph 15 does not exceed R30 000;

[Item (BB) substituted by section 5(1)(b) of Act 16 of 2016 effective on 1 March, 2017 and applicable in respect of years of assessment commencing on or after that date]

[Paragraph (dd) added by section 18 of Act 8 of 2010, amended by section 7 of Act 44 of 2014 effective on 1 March 2015, substituted by section 6(d) of Act 23 of 2015 effective on 8 January 2016, amended by section 6(e) of Act 23 of 2015 effective on 1 March 2016]

(ee) a small business funding entity;

[Paragraph (ee) added by section 7(1)(c) of Act 44 of 2014, substituted by section 6(1)(d) of Act 23 of 2015 and amended by section 6(1)(e) of Act 23 of 2015 and by section 6 of Act 24 of 2020]

(ff) a deceased estate; and

[Paragraph (ff) added by section 6(1)(e) of Act 23 of 2015 and amended by section 6 of Act 24 of 2020]

(gg) any entity as defined in section 30B that has been approved by the Commissioner in terms of section 30B(2);

[Definition of “provisional taxpayer” amended by section 47(1)(b) of Act 85 of 1974, by section 38 of Act 121 of 1984, by section 44(1)(a) of Act 129 of 1991, by section 53(1)(a) of Act 59 of 2000, by section 46(1)(a) of Act 32 of 2004, by section 49(1)(a) and (b) of Act 31 of 2005, by section 39(g) of Act 20 of 2006, by section 54(1)(c) of Act 8 of 2007, by section 43(b) of Act 3 of 2008 and substituted by section 17(1)(a) of Act 18 of 2009 deemed effective on 1 January, 2009 and applicable in respect of years of assessment ending on or after that date. Paragraph (gg) added by section 6 of Act 24 of 2020]