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Act 91 of 1982, ssection 56-57 of Act 94 of 1983, ssection 46-47 of Act 97 of 1986 and section 58 of Act 59 of 2000 and repealed by section 58 of Act 8 of 2007.
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paragraph 83 of Schedule 1 of Act 28 of 2011, by section 10 of Act 39 of 2013 and by section 11 of Act 23 of 2015 and repealed by section 11(1) of Act 16 of 2016 effective on 1 March, 2017 and applicable in respect of years of assessment commencing on or after that date]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. . . . . . .
PART IV
GENERAL
EMPLOYEES’ TAX AND PROVISIONAL TAX TO BE SET OFF AGAINST TAX LIABILITY
“remuneration” means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument, pension, superannuation allowance, retiring allowance or stipend, whether in cash or otherwise and whether or not in respect of services rendered, including –
(a) any amount referred to in paragraph (a), (c), (cA), (cB), (d), (e), (eA), (eD) or (f) of the definition of “gross income” in section 1 of this Act;
[Paragraph (a) substituted by section 44(1)(a) of Act 28 of 1997, by section 53(1)(b) of Act 59 of 2000, by section 6(1)(f) of Act 23 of 2015 and by section 5(1) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]
(b) any amount required to be included in such person’s gross income under paragraph (i) of that definition, excluding an amount described in paragraph 7 of the Seventh Schedule;
(bA) any allowance or advance, which must be included in the taxable income of that person in terms of section 8(1)(a)(i), other than –
(i) an allowance in respect of which paragraph (c) or (cA) applies; or
(ii) an allowance or advance paid or granted to that person in respect of accommodation, meals or other incidental costs while that person is by reason of the duties of his or her office obliged to spend at least one night away from his or her usual place of residence in the Republic: Provided that where –
(aa) such an allowance or advance was paid or granted to a person during any month in respect of a night away from his or her usual place of residence; and
(bb) that person has not by the last day of the following month either spent the night away from his or her usual place of residence or refunded that allowance or advance to his or her employer,
that allowance or advance is deemed not to have been paid or granted to that person during that first-mentioned month in respect of accommodation, meals or other incidental costs, but is deemed to be an amount which has become payable to that person in that following month in respect of services rendered by that person;
(c) 50 per cent of the amount of any allowance referred to in section 8(1)(d) granted to the holder of a public office contemplated in section 8(1)(e),
(cA) 80 per cent of the amount of any allowance or advance in respect of transport expenses referred to in section 8(1)(b), other than any such allowance or advance contemplated in section 8(1)(b)(iii) that is based on the actual distance travelled by the recipient: Provided that where the employer is satisfied that at least 80 per cent of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20 per cent of the amount of such allowance or advance must be included;
[Paragraph (cA) inserted by section 28 of Act 9 of 2006, substituted by section 17 of Act 18 of 2009, section 18 of Act 8 of 2010 and section 8 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]
(cB) 80 per cent of the amount of the taxable benefit as determined in terms of paragraph 7 of the Seventh Schedule: provided that where the employer is satisfied that at least 80 per cent of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20 per cent of such amount must be included;
(cC) 100 per cent of so much of the amount paid or granted as an allowance or advance referred to in section 8(1)(b)(iii) as exceeds the amount determined by applying the rate per kilometre for the simplified method in the notice fixing the rate per kilometre under section 8(1)(b)(ii) and (iii) to the actual distance travelled;
[Paragraph (cC) to be inserted by section 8 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]
(d) any gain determined in terms of section 8B, which must be included in that person’s income under that section;
(e) any amount referred to section 8C which is required to be included in the income of that person;
[Paragraph (e) inserted by section 46 of Act 32 of 2004, substituted by section 6 of Act 23 of 2015 effective on 8 January 2016]
(f) any amount deemed to be income accrued to that person in terms of section 7(11);
(g) any amount received by or accrued to that person 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);
(iv) paragraph (kk) of the proviso to section 10(1)(k)(i),
[Subparagraph (iv) added by section 8 of Act 13 of 2017 effective on the date on which paragraph (f) of section 16(1) of the Taxation Laws Amendment Act, 2017, comes into operation, 18 December 2017]
[Paragraph (g) added by section 5 of Act 16 of 2016 effective on 1 March 2017 and applies in respect of any amount received or accrued on or after that date]
but not including–
(i) ……….
(ii) any amount paid or payable in respect of services rendered or to be rendered by any person (other than a person who is not a resident or an employee contemplated in paragraph (b), (c), (d) or (e) of the definition of “employee”) in the course of any trade carried on by him independently of the person by whom such amount is paid or payable and of the person to whom such services have been or are to be rendered: Provided that for the purposes of this paragraph a person shall be deemed not to carry on a trade independently as aforesaid if the services are required to be performed mainly at the premises of the person by whom such amount is paid or payable or of the person to whom such services were or are to be rendered and the person who rendered or will render the services is subject to the control or supervision of any other person as to the manner in which his or her duties are performed or to be performed or as to his or her hours of work: Provided further that a person will be deemed to be carrying on a trade independently as aforesaid if he throughout the year of assessment employs three or more employees who are on a full time basis engaged in the business of such person of rendering any such service, other than any employee who is a connected person in relation to such person;
[Paragraph (ii) substituted by section 47(1)(c) of Act 85 of 1974 and amended by section 44(1)(e) of Act 101 of 1990, by section 53(1)(c) of Act 59 of 2000, by section 54(1)(d), (e), (f) and (g) of Act 8 of 2007, by section 5(1)(d) of Act 16 of 2016 and by section 36 of Act 20 of 2021]
(iii) any pension or additional pension under the Aged Persons Act, 1967 (Act No. 81 of 1967), or the Blind Persons Act, 1968 (Act No. 26 of 1968), any disability grant or additional or supplementary allowance under the Disability Grants Act, 1968 (Act No. 27 of 1968), or any grant or contribution under the provisions of section 89 of the Children’s Act, 1960 (Act No. 33 of 1960);
(iv) ……….
(v) ……….
(vi) any amount paid or payable to any employee wholly in reimbursement of expenditure actually incurred by such employee in the course of his employment;
(vii) ……….
(viii) any annuity under an order of divorce or decree of judicial separation or under any agreement of separation;
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]
28.
(1) There shall be set off against the liability of the taxpayer in respect of any taxes (as defined in subparagraph (8)) due by the taxpayer, the amounts of employees’ tax deducted or withheld by the taxpayer’s employer during any year of assessment for which the taxpayer’s liability for normal tax has been assessed by the Commissioner and the amounts of provisional tax paid by the taxpayer in respect of any such year, and if—
(a) the sum of the said amounts of employees’ tax and provisional tax exceeds the amount of the taxpayer’s total liability for the said taxes, the excess amount shall be refunded to the taxpayer; or
(b) the taxpayer’s total liability for the aforesaid taxes exceeds the sum of the said amounts of employees’ tax and provisional tax, the amount of the excess shall be payable by the taxpayer to the Commissioner.
[Subparagraph (1) amended by section 30 of Act 95 of 1967 and substituted by section 48 of Act 89 of 1969, by section 48(a) of Act 88 of 1971, by section 55(1) of Act 85 of 1974, by section 53(a) of Act 94 of 1983, by section 30(1)(a) of Act No. 65 of 1986 and by section 52 of Act 34 of 2019]
(2) The burden of proof that any amount of employees’ tax has been deducted or withheld by his employer shall be upon the taxpayer and any employees’ tax certificate shall be prima facie evidence that the amount of employees’ tax reflected therein has been deducted by the employer.
(3) If the Commissioner is satisfied that the amount or any portion of the amount of employees’ tax shown in any employees’ tax certificate has not been deducted or withheld by the employer and the amount of employees’ tax shown in such tax certificate has been applied as provided in sub–paragraph (1), the employer and the employee shall be jointly and severally liable to pay to the Commissioner the amount which should not have been so applied and such amount shall be recoverable under this Act as if it were a tax.
(4) An employer who has under sub–paragraph (3) paid to the Commissioner an amount which has but should not have been applied under the provisions of sub–paragraph (1), may, if the amount was shown or included in the certificate because of a bona fide error, recover the amount so paid from the employee concerned, and in that case the provisions of sub–paragraph (3) of paragraph 5 shall mutatis mutandis apply.
(5) No employees’ tax certificate shall be issued by the employer in respect of any amount recovered by him from the employee in terms of sub–paragraph (4) nor shall any such amount be included in any return rendered in terms of sub–paragraph (3) of paragraph 14.
(6) If the Commissioner is satisfied that the employee to whom an employees’ tax certificate refers was directly or indirectly responsible for an incorrect amount being shown on such certificate he may absolve the employer from the liability imposed upon him by sub–paragraph (3), and in that case the employee shall be solely liable under that sub–paragraph.
(7) . . . . . .
[Sub-paragraph (7) added by section 29(1)(b) of Act 90 of 1964 and deleted by section 14 of Act 16 of 2016]
(8) For the purposes of this paragraph, “taxes” means the normal tax levied under this Act.
“representative employer” means –
(a) in the case of any company, the public officer of that company, or, in the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, in liquidation or under judicial management, the business rescue practitioner, liquidator or judicial manager, as the case may be;
[Paragraph (a) substituted by section 7 of Act 44 of 2014 effective on 20 January 2015]
(b) in the case of any municipality or any body corporate or unincorporated (other than a company or a partnership), any manager, secretary, officer or other person responsible for paying remuneration on behalf of such municipality or body;
(c) in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or
(d) in the case of any employer who is not resident in the Republic, any agent of such employer having authority to pay remuneration,
who resides in the Republic, but nothing in this definition shall be construed as relieving any person from any liability, responsibility or duty imposed upon him or her by this Schedule; and
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]
28A. Payments by way of employees’ tax and provisional tax must, for the purposes of this Act and subject to the provisions of paragraph 28, be regarded as having been made in respect of the taxpayer’s liability for tax whether or not the liability has been ascertained or determined at the date of any payment.
2. EMPLOYERS TO DEDUCT TAX
(1) Every-
(a) employer that is a resident; or
(b) employer that is not a resident and conducts business through a permanent establishment in the Republic; or
(c) representative employer,
(whether or not registered as an employer under paragraph 15) who pays or becomes liable to pay any amount by way of remuneration to any employee shall, unless the Commissioner has granted authority to the contrary, deduct or withhold from that amount, or, where that amount constitutes any lump sum contemplated in paragraph 2(1)(b) of the Second Schedule, deduct from the employee’s benefit or minimum individual reserve as contemplated in that paragraph, by way of employees’ tax an amount which shall be determined as provided in paragraph 9, 10 or 11 or section 95 of the Tax Administration Act, whichever is applicable, in respect of the liability for normal tax of that employee, or, if such remuneration is paid or payable to an employee who is married and such remuneration is under the provisions of section 7(2) of this Act deemed to be income of the employee’s spouse, in respect of such liability of that spouse, and shall, subject to the Employment Tax Incentive Act, 2013, pay the amount so deducted or withheld to the Commissioner within seven days after the end of the month during which the amount was deducted or withheld, or in the case of a person who ceases to be an employer before the end of such month, within seven days after the day on which that person ceased to be an employer, or in either case within such further period as the Commissioner may approve.
[Subparagraph (1) amended by section 23(a) of Act 72 of 1963, substituted by section 29(1)(a) of Act 55 of 1966, by section 38 of Act 88 of 1971, by section 45(a) of Act 129 of 1991, by section 54 of Act 59 of 2000, amended by section 65(1) of Act 35 of 2007, by section 18(1)(a) of Act 18 of 2009 and by section 13 of Act 26 of 2013 and substituted by section 6(1)(a) of Act 16 of 2016 and by section 13(a) of Act 18 of 2023]
(1A) Notwithstanding the provisions of subparagraph (1), a person shall not be required to deduct or withhold employee’s tax in respect of any year of assessment of a company or trust solely by virtue of paragraph (c) of the definition of ‘personal service provider’ where the company or trust has in respect of such year of assessment provided that person with an affidavit or solemn declaration stating that the relevant paragraph does not apply and that person relied on that affidavit or declaration in good faith.
(1B) Notwithstanding the provisions of subparagraph (1), a person shall deduct or withhold employees’ tax in respect of any amount payable in respect of variable remuneration, as defined in section 7B(1), on the date on which the amount is paid to the employee by the employer as contemplated in section 7B(2).
(2) Any employer may, at the written request of any employee, deduct or withhold from any amount of remuneration an amount by way of employees’ tax greater than that required to be deducted or withheld in terms of sub–paragraph (1), and shall remit such amount to the Commissioner, and the provisions of this Schedule relating to employees’ tax shall mutatis mutandis apply in respect of such amount.
(2A) An employer may deduct the amount of the employment tax incentive for which the employer is eligible in terms of the Employment Tax Incentive Act, 2013, from the amount of the employees’ tax to be paid to the Commissioner by that employer in terms of subparagraph (1), unless section 8 of that Act applies.
(2B) Notwithstanding the provisions of subparagraph (1), a person that pays an annuity and is a pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or is licensed as an insurer under the Insurance Act shall, when deducting or withholding employees’ tax in respect of any year of assessment, apply the fixed tax rate that the Commissioner directs must be used in determining the amount of employees’ tax to be withheld, where the person to whom that annuity is paid receives an amount of remuneration from more than one employer.
[Subparagraph (2B) added by section 51(1) of Act 34 of 2019 effective on 1 March, 2022 (effective date in section 51(2) of Act 34 of 2019 as substituted by section 79(1) of Act 23 of 2020) and substituted by section 37(1) of Act 20 of 2021 effective on 1 March, 2022]
(2C) A pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund that pays a “savings withdrawal benefit” as defined in section 1 shall, when deducting or withholding employees’ tax in respect of that savings withdrawal benefit, apply the fixed tax rate that the Commissioner directs must be used in determining the amount of employees’ tax to be withheld.
[Subparagraph (2C) added by section 6(1) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]
(3) ……….
(4) The amount required to be deducted or withheld from any remuneration under this Schedule by way of employees’ tax must be calculated on the balance of the remuneration remaining after deducting therefrom-
(a) any contribution by the employee concerned to any pension fund or provident fund which the employer is entitled or required to deduct from that remuneration, but limited to the deduction to which the employee is entitled under section 11F having regard to the remuneration and the period in respect of which it is payable;
[Item (a) substituted by section 18 of Act 18 of 2009 and section 8 of Act 39 of 2013 effective on 1 March 2016 (Date of operation in section 8 of Act 39 of 2013 as substituted by section 68 of Act 44 of 2014) and section 66 of Act 17 of 2017 effective on 1 March 2016]
(b) at the option of the employer, any contribution to a retirement annuity fund by the employee in respect of which proof of payment has been furnished to the employer, but limited to the deduction to which the employee is entitled under section 11F having regard to the remuneration and the period in respect of which it is payable;
[Paragraph (b) substituted by section 8 of Act 39 of 2013 effective on 1 March 2016 – comes into operation in terms of section 8 of Act 39 of 2013 as substituted by section 68 of Act 44 of 2014 and section 66 of Act 17 of 2017 effective on 1 March 2016]
(bA) any contribution made or amount paid by the employer to any retirement annuity fund on behalf of or for the benefit of the employee, but limited to the deduction to which the employee is entitled under section 11F having regard to the remuneration and the period in respect of which it is payable;
[Item (bA) inserted by section 18 of Act 18 of 2009 and substituted by section 8 of Act 39 of 2013 effective on 1 March 2016 (Date of operation in section 8 of Act 39 of 2013 as substituted by section 68 of Act 44 of 2014), section 66 of Act 17 of 2017 and section 67 of Act 23 of 2018 effective on 1 March 2018]
(c) . . . . . .
[Item (c) amended by section 50(1)(a) of Act 31 of 2005 and deleted by section 8(1)(b) of Act 39 of 2013 effective on 1 March, 2015 and applicable in respect of premiums paid on or after that date]
(cA) . . . . . .
[Item (cA) inserted by section 94(1)(a) of Act 24 of 2011 repealed by section 92 of Act 21 of 2012) and deleted by section 8(1)(b) of Act 39 of 2013 effective on 1 March, 2015 and applicable in respect of premiums paid on or after that date]
(d) ……….
(e) ……….
(f) so much of any donation made by the employer on behalf of the employee—
(i) as does not exceed 5 per cent of that remuneration after deducting therefrom the amounts contemplated in items (a), (b) and (bA); and
[Sub-item (i) substituted by section 94(1)(c) of Act 24 of 2011, by section 19(1)(c) of Act 21 of 2012 and by section 6(1)(b) of Act 16 of 2016 deemed effective on 1 March, 2015 and applicable in respect of donations paid on or after that date]
(ii) for which the employer will be issued a receipt as contemplated in section 18A(2)(a).
: Provided that at any time during the year of assessment the amount of the contribution to be deducted in terms of paragraphs (a), (b) and (bA) must not exceed an amount that bears to the amount stipulated in section 11F(2)(a) the same ratio as the period during which remuneration was paid by an employer to the employee bears to a whole year.
[Proviso to subparagraph (4) added by section 9 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]
(5)
(a) The Commissioner shall on application made to him by any person who is a labour broker or who is an employee by reason of the provisions of paragraph (d) of the definition of “employee” in paragraph 1, issue to such person a certificate of exemption if –
(i) such person carries on an independent trade and is registered as a provisional taxpayer under the provisions of paragraph 17;
(ii) in the case of any such labour broker, he is registered as an employer under the provisions of paragraph 15; and
(iii) such person has, subject to any extension granted by the Commissioner, submitted all such returns as are required to be submitted by him under this Act:
Provided that the Commissioner shall not issue a certificate of exemption if-
(aa) more than 80 per cent of the gross income of such person during the year of assessment consists of, or is likely to consist of, an amount or amounts received from any one client of such person, or any associated institution as defined in the Seventh Schedule to this Act in relation to such client unless that person is a labour broker who throughout the year of assessment employs three or more full-time employees-
(A) who are on a full-time basis engaged in the business of that labour broker of providing persons to or procuring persons for clients of that labour broker; and
(B) who are not connected persons in relation to that labour broker;
(bb) such labour broker provides to any of its clients the services of any other labour broker; or
(cc) such labour broker is contractually obliged to provide a specified employee of such labour broker to render any service to such client.
(b) The certificate of exemption referred to in item (a) shall be issued in such form as the Commissioner may decide and shall be valid for such period as the Commissioner may indicate thereon.
(c) An employer shall not be required to deduct or withhold employees’ tax from any remuneration paid or payable by the employer to any person who produces to the employer a valid certificate of exemption issued by the Commissioner under item (a).
[Subparagraph (5) added by section 45 of Act 101 of 1990. Item (c) substituted by section 13(b) of Act 18 of 2023]
(6) Any amount included in gross income in terms of paragraph (eA) of the definition of “gross income” shall for the purposes of this Schedule be deemed to be an amount which an employer pays or becomes liable to pay by way of remuneration to an employee.