Payments To SARS – New Rules You Need To Know
If you have used a cheque lately, you will be shocked to see how much your bank charges to process the cheque. The security risks of making payment by cheque are also well known. Like telegrams and the Dodo, cheques are headed for extinction. SARS has recently announced that it is also reducing its exposure to cheques and as from 30 May, no cheques are being accepted -
The cheque should be restrictively crossed and made to “South African Revenue Service” and not “SARS”.
It is also worth noting that payments and submissions for the following can only be made electronically (eFiling or Electronic Funds Transfer) -
Finally, if you put a cheque into a SARS “Drop Box” outside their office, it must be dropped off by 3 p.m., otherwise it is deemed to be received the next day, exposing you to penalties.
- If the payer has “bounced” two cheques with SARS in the past three years,
- Unless the cheque is submitted with a SARS payment advice that is not older than 7 days from the date of the notice,
- Unless each tax type (PAYE, VAT etc) is an individual cheque and the payment limit is R50,000 per payment.
The cheque should be restrictively crossed and made to “South African Revenue Service” and not “SARS”.
It is also worth noting that payments and submissions for the following can only be made electronically (eFiling or Electronic Funds Transfer) -
- Retirement Fund Tax – this can only be paid via eFiling using credit push
- Securities Transfer Tax
- Transfer Duty
- If Employees’ Tax (PAYE) exceeds R10 million in any 12 month period, or realistically will go over the R10 million threshold in a 12 month period.
Finally, if you put a cheque into a SARS “Drop Box” outside their office, it must be dropped off by 3 p.m., otherwise it is deemed to be received the next day, exposing you to penalties.
Provided by May and Company
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