New Tax Calculator - Thursday, February 26, 2015
We have updated out Tax Calculator with the new tax rates as presented by Finance Minister Nhlanhla Nene on 25 February 2015, at 2pm.

Try the Free Online Tax Calculator today to see how the new budget affects your pocket! 

Income Tax Registration for your staff members

We can help - talk to our Income Tax Registration experts

Income tax registration requires you to register ALL your employees for income tax – regardless of how much they earn.

When it comes time for the biannual PAYE reconciliation, SARS requires each employee’s income tax number to populate the EMP501 using its new software. PAYE reconciliation is therefore not possible without income tax numbers.

Strict penalties are in force for non-compliance, including failure to submit income tax registration for employees.

Let us handle all your staff income tax registration requirements. Avoid penalties and don’t waste your own resources on it.

Get a FREE quote on Income Tax Registration.

Tel: +27 11 450 1255

More useful information on Income Tax Registration

Who is liable for Income Tax Registration?

Any person who receives income from any type of employment is required to register for income tax. Income tax registration must be submitted to SARS within 60 days of becoming liable.

An income tax return must then be submitted to SARS once a year, in the case of employees who earn more than R120 000 per annum.

What type of income is taxed?

A comprehensive range of income is taxed. This not only includes income that comes from employment (salaries, bonuses and overtime); it also covers any other business income, income from investments, fringe benefits, annuities and pensions.

What types of tax does income tax registration cover?

There are two primary types of tax, both of which need to be deducted from employee salaries. These are SITE (Standard Income Tax on Employees) and PAYE (Pay As You Earn).

SITE is not a separate tax – it applies to employees who earn below a specific income threshold, allowing them to pay tax without submitting a tax return. To qualify for SITE, an employee must earn up to R60 000 per year, must not receive a travel allowance and must not earn any other form of income.

PAYE applies to employees who earn more than R60 000 per year and is calculated according to SARS tax tables. These employees must submit a tax return, along with an IRP5 form that you must supply them with as their employer. The IRP5 must show the total amount earned and the tax that you have deducted for the year.

SARS will check the tax return to make sure that the right amount of tax has been paid. If there are discrepancies, it will either refund the employee (in the case of having paid too much) or require an additional payment (if too little tax was paid).