A new employee's tax certificate system has been introduced by the South African Revenue Services (SARS) as part of its New Income Tax System (NITS) to ensure employees are correctly taxed and that this tax is, in fact paid over.
Colin Wolfsohn, tax partner at Grant Thornton Kessel Feinstein, says the new IRP5/IT3 (a) employees tax certificate system can be applied from March 1, 1998 to February 28, 1999.
He says the new system requires employers to insert significant additional information on IRP5 certificates.
SARS now requires all payments to employees, whether taxable or not, to be reflected on IRP5 forms, to ensure that all employees are correctly taxed on all forms of income received and that all taxes are correctly paid over to the Receiver.