MARCH 2020 – SOUTH AFRICA

NEW VERSION OF SARS PAYE BRS PUBLISHED

It is important that employers note the following:

SARS PAYE BRS for Employer Reconciliation (2020 release) version 19.0 published

The latest SARS PAYE Employer Reconciliation Business Requirement Specification (BRS) has been published. The requirements in this version of the BRS will become effective from September 2020 until it is replaced by an updated version.

The update includes new source codes, amended validation rules and amended descriptions.

Sections where changes were made are as follows:

New source codes (applicable/valid from 2021 assessment year)

3618/3668: Annuity from a Provident/Provident Preservation Fund (PAYE)

• Any qualifying annuity paid on a regular basis from a provident or provident preservation fund, as well as backdated provident or qualifying annuity (from a pension or pension preservation fund) (for current tax year)

4587: Section 10(1)(o)(ii) exemption considered by the employer for PAYE purposes

• The exemption remains an assessment determination by SARS (i.e. when the completed ITR12 return is submitted by the employee to, and processed by, SARS).
• Employers are therefore required to declare the foreign service remuneration as per the SARS Business Requirements Specification.
• The potential that the employee may qualify for the exemption does not automatically waive the obligation of an employer to deduct and pay PAYE. Where an employer is satisfied that the exemption will apply, the employer may choose not to deduct and pay PAYE. However, where the exemption is not allowed when the ITR12 of the employee is processed, the employer will be liable for the PAYE not deducted, as well as the concomitant penalties and interest.

Amended validation rules

Employer information:

• Code 2039 – Employer contact person fax number
• Code 2035 – Employer trade classification

Tax certificate information:

• Code 3010 – Tax certificate number
• Code 3020 – Nature of person
• Code 3040 – First two names
• Code 3050 – Initials
• Code 3263 – Employee SIC7 code
• Code 3135 – Employee home telephone number
• Code 3136 – Employee business telephone number
• Code 3137 – Employee fax number

Directive information:

• Code 3230 – Directive number

Amended descriptions

Normal income codes:

• 3603 – Pension (PAYE)
• 3611 – Purchased annuity (PAYE)
• 3908 – Exempt Policy Proceeds (Excl.), previously “Surplus apportionments and Exempt Policy Proceeds (Excl.)”

To view the detailed SARS BRS, follow the link.

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2020 CRS Technologies (Pty)Ltd. All Rights Reserved.