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Statutory Info

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As specialists in Human Resource and Payroll Solutions, statutory compliance is essential. CRS is committed to always keep clients abreast of legislative changes, developments and the effects it has on industry.

Official Interest Rate

6.5% (as at 1 March 2011)

Coida

R239 172 per annum (01 March 2010)
R261 893 per annum (01 April 2010 – Feb 2011) Gazette 32903: This results in a split reporting year unless otherwise changed to 01 March 2010 as been practice for the last couple of years.
R277 860 per annum (01 March 2011 – Feb 2012)
R292 032 per annum (1 April 2012 – Feb 2013)

BCEA

Earnings threshold – R172 000 per annum (July 2011) Earnings threshold – R149 736 per annum (March 2008)

SDL

Payroll Threshold remains at R500,00.00 PA – 1% Employer Contribution

UIF

With effect from the 1st October 2007 – UIF Earnings limit: R149,736.00 – per annum, R12,478.00 – per month, R2,879.53 – per week. 1% Employee, 1% Employer contribution

Travelling Allowances

With effect from 1 March 2010, 80% of a travel allowance is subject to the deduction of employees’ tax. With effect from 1 March 2011, an exception is allowed in cases where the employer is satisfied that at least 80% of the use of motor vehicle will, during the year of assessment be for business purposes, then only 20% of the allowance is subject to the deduction of employees’ tax.

Employees must, in order to claim travel expenses for business purposes against this allowance when completing their income tax returns, keep record of actual business distances travelled (e.g. a logbook).

The full travel allowance must be reflected under the prescribed codes on the IRP5/IT3(a) tax certificates as described in the AS-PAYE-05-G3 Guide for Employers in respect of Allowances (2011 Tax Year).

Motor Vehicle:

EMPLOYER-PROVIDED MOTOR VEHICLES

A taxable benefit shall be deemed to have been granted where an employee is granted the right of use of any motor vehicle for private or domestic purposes, either free of charge or for a consideration which is less than the value of such use.

The private use of the vehicle includes travelling between the employee’s place of employment and place of residence.With effect from 1 March 2011, the percentage rate for all employer-provided vehicles will be 3.5 percent per month of the vehicle’s determined value. However, vehicles with maintenance plans included within the purchase price at the time of purchase will trigger only a 3.25 percent monthly fringe benefit.

The current exclusion from the determined value of the VAT paid on the acquisition of the vehicle changes from 1 March 2011. With effect from this date the determined value must now include the VAT paid on the acquisition of the vehicle.

The full value of the taxable benefit must be reflected under code 3802 on the IRP5/IT3(a) tax certificate as in the past.With effect from 1 March 2011, only 80% of the taxable value of this benefit is subject to the deduction of employees’ tax.

Where the employer is satisfied that at least 80% of the use of motor vehicle will, during the year of assessment be for business purposes, then 20% of the taxable value of the benefit is subject to the deduction of employees’tax. Refer to SARS web site for more details.

Reimburse Travel

Where the distance travelled for business purposes does not exceed 8 000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 316 cents per kilometre, regardless of the value of the vehicle.
This alternative is not available if other compensation in the form of an allowance or reimbursement is received from the employer in respect of the vehicle.

Donations:

The employer must deduct so much of any donation deducted from the of the employee and paid over by the employer to the relevant approved organisation on behalf of the employee.

Limitation The deduction may not exceed 5% of the remuneration after deducting there from —

allowable pension fund contributions;
allowable RAF contributions;
allowable income protection policy premiums; and
allowable medical scheme contributions.

Note: This deduction may only be allowed if the employer will be issued a receipt
which reflects the details as prescribed in section 18A(2)(a).

Subsistence Allowance:

Where the recipient is obliged to spend at least one night away from his / her usual place of residence on business and the accommodation to which that allowance or advance relates, is in the Republic and the allowance / advance is paid or granted to pay for:

Meals and incidental costs, an amount of R303 per day is deemed to have been expended or:

Incidental costs only, an amount of R93 per day is deemed to have been expended.

Tool Allowance:

Remains at R75

Other allowances received by virtue of the employee’s office or duties (e.g.tool allowance, etc.).

Medical and disability expenses:

Taxpayers 65 and older may claim all qualifying expenditure.
Taxpayers under 65 who contribute to a medical scheme will receive a tax credit of R230 for each of the first two dependents and then R154 for each dependent thereafter. The credit will be applied to the tax due. Note: the allowable credit may not be more than the tax due.

Tax Deductions

Pension Fund

Limitation

Current contributions— An annual deduction limited to the greatest of —

R1 750; or
7,5% of the remuneration received during the year from retirement funding employment.

Arrear contributions — An annual deduction limited to R1 800.

Retirement Annuity

Limitation

Current contributions — An annual deduction limited to the greatest of —

R1 750;
R3 500 less allowable current pension fund contributions; or
15% of the remuneration received during the year from non-retirement funding employment.

Arrear contributions — An annual deduction limited to R1 800.

SARS

Labour

SAPA

Public Holidays: 2012

New Year’s Day	1 January
Human Rights Day	21 March
Good Friday	6 April
Family Day	9 April
Freedom Day	27 April
Workers’ Day	1 May
Public Holiday	17 December
Youth Day	16 June
National Women’s Day	9 August
Heritage Day	24 September
Day of Reconciliation	16 December
Christmas Day	25 December
Day of Goodwill	26 December

* If any of these public Holidays fall on a Sunday the following Monday shall be a public holiday