Your Employer Annual Declaration is Due by 31 May

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	2023 RETURN OF EARNINGS DECLARATION The Department of Labour and/or Rand Mutual Assurance (RMA), in accordance with the Compensation for Occupational Injuries and Diseases Act (COIDA) requires employers to submit a declaration from 1 April 2024 to 30 June 2024 which declares the number of employees (including directors) and their annual earnings, per month, for the period 1 March 2023 – 28 February 2024. A percentage is determined, depending on the industry applicable to the employer, which is used to determine the fee payable to the Compensation Fund (CF). If the declaration and payment is not made by 30 June 2024, a penalty not exceeding 10% of the assessment will be charged. 2024 EMPLOYER ANNUAL RECONCILIATION Employers are required to submit their Pay-As-You-Earn Employer Annual Reconciliation (EMP501) from mid-April to 31 May 2024 and involves a reconciliation between the monthly EMP201 declarations submitted to SARS, monthly payments made to SARS and income tax certificates (IRP5) for the 2023/2024 tax year. Employers are also required to supply employees with a copy of their income tax certificates (IRP5). It is of utmost importance to ensure that each employee’s personal details are up to date and accurate, as the information will reflect on the employee’s 2024 income tax certificate (IRP5). SARS has developed a free software programme to assist employers with the reconciliation and submission process and is available for download on their website (www.sars.gov.za). To avoid any penalties or interest charged, ensure that your reconciliation is submitted by 31 May 2024. In due course, SDK Cloud Accounting will be contacting our payroll clients to request up to date information to ensure the accuracy of submissions. NEW THIRD-PARTY DATA SUBMISSION REQUIREMENT FOR S18A INSTITUTIONS AND TRUSTS According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all approved Section 18A institutions will be required to submit IT3(d) data with effect from May 2024 for the 2023/2024 year of assessment (01 March 2023 to 28 February 2024). Under the same publication all Trusts will be required to submit IT3(t) third-party information. This means that Tax exempt (EI) Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS. The IT3(d) and IT3(t) information required to be declared includes: All amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts. S18A receipts issued to donors. Third-Party Data Submissions by Trusts that are Tax Exempt Institutions According to the Public Notice 3631 published in Government Gazette No. 48867 on 30 June 2023, all Trusts will be required to submit third-party information (IT3(t) – returns) on all amounts vested in beneficiaries including income (nett of expenditure), capital gains and capital amounts. Due to their philanthropic and altruistic nature, tax exempt (EI) Trusts are established to benefit the public at large. Therefore, these Trusts do not have the type of beneficiaries envisaged with the submission of IT3(t) returns i.e., beneficiaries of the Trust, as per the Trust instrument, and who will benefit from the income or assets of the Trust. However, certain EI Trusts have other organisations listed as beneficiaries in their Trust instruments to whom distributions will be made on a periodic basis or as per the discretion of the trustees. Typical instances are where a conduit public benefit organisation (PBO) provides funding to one or more public benefit organisations as per the stipulations in the Trust instrument. These Trusts will also be required to submit IT3(t) third party returns for the year of assessment ending on the last day of February 2024. EI Trusts that are approved Section 18A institutions, will be required to submit both the IT3(d) and IT3(t) data to SARS. Should you require further clarification, please do not hesitate to contact us at taxca@sdkca.co.za.

May 2024 NEWSLETTER

Your Employer Annual Declaration is Due by 31 May

Employers have only until 31 May 2024 to submit their Annual Reconciliation Declarations for the period 1 March 2023 to 29 February 2024. This is a focus area for the South African Revenue Service (SARS), not just to ensure employer compliance, but also because it ultimately enables SARS to issue individual taxpayers with income tax auto-assessments.

Non-submission or late submission of declarations, and the submission of incorrect or inaccurate data, can attract penalties, interest and even criminal prosecution, making professional assistance important when submitting this year’s EMP501.

How and When to Save a Struggling Start-Up

When people speak about start-ups, they often only mention the successful ones. Stats, however, show that five years after founding only half of all businesses are still alive and after ten years only one third remain. The list of reasons for this is endless, ranging from a lack of capital to volatile markets and poor hiring choices.

If your business is struggling it’s not unusual and there are definitely things you can do about it, but should you? Here’s our guide for knowing how and when to save your start-up.

Beneficial Ownership Registers - Now Mandatory with CIPC Annual Returns

It’s been a year since 24 May 2023 when company directors and members of close corporations became obliged to lodge a Beneficial Ownership Register plus supporting documents with the Companies and Intellectual Property Commission (CIPC) - which also needs to be maintained, updated timeously and confirmed annually.

Since all entities should have lodged this register by 24 May 2024 - a year later - it has now become mandatory to file beneficial ownership information before the annual returns can be submitted. Non-compliance with the beneficial ownership requirements has consequences, as does failing to submit the annual return timeously.

Five Things You Need to do After the CIPC Hack

On the 1st of March 2024, South Africa’s official regulatory body for registering companies, co-operatives, and intellectual property rights (including trademarks, patents, designs and copyrights), the CIPC, put a notice on its website about a hacking incident on Thursday, the 29th of February 2024.

Since then, additional information has come to light, which indicates this may be worse than the agency believes. Here are the five things you need to do after the CIPC hack.

Your Tax Deadlines for May 2024

07 May - PAYE submissions and payments
24 May– Value-Added Tax (VAT) manual submissions and payments
30 May – Excise duty payments
31 May – VAT electronic submissions and payments, & Corporate Income Tax (CIT) Provisional Tax payments where applicable.

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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