Namibia new Integrated Tax System (ITAS)

The Ministry of Finance has developed an integrated information technology solution for the administration of taxes. The new system, known as Integrated Administration System (ITAS) is replacing the existing legacy system (Taxlive) and is operational as from 17 January 2019.

Taxpayers are urged to register as E-service users and maximize the benefits of electronic filing. To register, log in on www.itas.mof.na and download the ITAA Portal User Guide.

Some of the navigation menus the website offers include:

  • TAS Portal (E-Service) which covers functions such as e-Registration, e-requests and e-Returns
  • Legal & Policy Documents
  • Downloads of return forms and other tax-related documents

What employers need to know:

    • Taxpayer Identification Number (TIN):The new system requires a “0” (zero) to be added in front of your existing TIN. Current TIN’s (7 digits) on Taxlive will be migrated to ITAS, were an additional digit, ’0’, will be added in front of the existing 7 digits in order to make up the 8 digit TIN required for ITAS.
  • Employees Tax Return Tax details (ETX):An employees Tax return is designed to capture employees tax detail. This change will be effective as from 1 March 2019, and all employers will be required to submit a detailed monthly ETX return which contains Employees PAYE 4 details as opposed to just a monthly payment. An excel sheet template designed for this purpose can be downloaded from the portal and can be uploaded after completing it when the taxpayer submits the return.
  • TAX Period Number for all Tax Type:With ITAS, the tax period number does not represent the calendar Month. For example, period 01/2019 does not mean January 2019, but it means period one (1) of 2019.

Contact our legislation team at info@crs.co.za if you require any additional information.
© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

Taxation Bills signed into law

On 17 January 2019, the President has signed three bills into law, namely the Taxation Laws Amendment Act, 2018 (Act No 23 of 2018) (2018 TLAA), the Tax Administration Laws Amendment Act, 2018 (Act No 22 of 2018) (2018 TALAA) and the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2018 (Act No. 21 of 2018) (2018 Rates Act).

These Acts give legislative effect to the tax proposals as outlined by the Minister of Finance in his annual National Budget Speech delivered on 21 February 2018.

The main changes applicable to employers and payroll are in the 2018 TLAA, namely

  • Clarifying the tax treatment and obligations of Funds managed by Bargaining Councils. 

    In 2017, changes were made to the Taxation Laws Amendment Act No.17 of 2017 in order to afford Bargaining Councils an opportunity to regularize their tax affairs to become tax compliant with the provisions of the Act.The relief formally referred to as “Bargaining Council tax relief” covers non-compliant Bargaining Councils in respect of employees’ tax that should have been deducted from all payments made by the Bargaining Councils to their members between 1 March 2012 and 28 February 2017. However, going forward, Bargaining Councils will not be afforded any legislative relief.

    Employer contributions to funds administered by Bargaining Councils for the benefit of employees should constitute a taxable fringe benefit in the employee’s hands and be subject to PAYE withheld by employers. The value of the taxable fringe benefit should be the contribution made by the employer on behalf of the employee.

    The amendments come into effect 1 March 2019.

  • Addressing anomalies in respect of Medical Tax Credits.Section 6A of the Income Tax Act makes provision for a prescribed amount of monthly medical scheme contributions that will qualify as a medical tax credit, which gradually increases depending on the number of dependents covered under a medical scheme plan.

    Amendments were made to the Act so that, where taxpayers carry a share of the medical scheme contributions in respect of dependants (for example, children jointly contributing towards their parent’s medical expenses), medical scheme fees tax credits should be proportionally allocated between taxpayers who made the payment of medical scheme contributions.

    The amendment is deemed to have come into operation on 1 March 2018 and applies in respect of years of assessment commencing on or after that date.

    SARS to provide clarification regarding the administrative requirement.

  • Removing taxable benefit on low or interest-free loans granted to low-income employees for low-cost housing. 

    The proposal that the market value of the immovable property acquired does not exceed R450 000 should be removed as the other monetary limit (remuneration proxy of R250 000) should suffice, together with the requirement that the employee actually occupies the property, has not been accepted.Therefore, no fringe benefit will arise if an employee acquires a house from their employers at a discount where all of the following requirements are met:

    the market value of the property does not exceed R450 000
    the employee’s remuneration does not exceed R250 000
    the employee is not a connected person in relation to the employer

    The amendments come into operation on 1 March 2019.

  • Extension of the Employment Tax Incentive.The Employment Tax Incentive (ETI) scheme has been extended for another 10 years until 28 February 2029.

    Issues, including the administration of the incentive, will be considered as a separate policy proposal for the upcoming Budget.

    The amendments came into effect on 17 January 2019.

Contact our legislation team at info@crs.co.za if you require any additional information
© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

PAYE BRS for Employer Reconciliation (2019 Release) version 18.0.0 was published

SARS published the tax certificate specification document on 21 January 2019.

The document specifies the requirements for the generation of an import tax file for the annual as well as the interim submission.  The requirements in this version of the BRS will become effective from September 2019 PAYE interim reconciliation period.

Extensive changes were made in the PAYE BRS V18 0 0 and are summarised on page 2 and 3 of the document.  The details of the changes are highlighted in green in the BRS.

To access the new BRS, follow the link:

http://www.sars.gov.za/AllDocs/Documents/PAYE%20BRS/SARS_PAYE_BRS%20-%20PAYE%20Employer%20Reconciliation_V18%200%200.pdf

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

Employment Services Act Draft Regulations published for public comment

On 28 December 2018, the Department of Labour published draft regulations for public comment on the registration of work seekers, the registration of private employment services or TES and the employment of foreign nationals. To see more information on the submission of comments, please follow the links to the respective regulations.

Draft Regulations on the registration of work seekers

The draft regulations are applicable to any work-seeker in possession of a valid 13-digit RSA Identification document, whereupon the Department will develop and maintain an electronic based register for work seekers.

The information required to register a work-seeker on the national database is the following:

  • RSA Identification number;
  • Disability status;
  • Equity group;
  • Marital status;
  • Criminal status;
  • Indication of the work-seeker status of employment;
  • Contact details;
  • Physical and postal address;
  • School qualification obtained;
  • Tertiary qualifications obtained;
  • Employment history.

Individuals applying for unemployment benefits under the UI Act, have an obligation to register as a work seeker.

Comments can be submitted until 27 January 2019.

For more information, please view the draft regulations by following this link:
https://www.gov.za/sites/default/files/gcis_document/201812/42140rg10902gon1430s.pdf

Draft Regulations on the registration of private employment agencies or temporary employment services

Employment services include the following:

  • Advising or counselling of workers on career choices.
  • Assessment of work-seekers for entry or re-entry into the labour market or for education and training.
  • Referring work seekers to employers to apply for vacancies or to training providers for education and training.
  • Assisting employers by providing recruitment and placement services or advising employers on the availability of work seekers with skills that match their needs.
  • Performing the functions of a Temporary Employment Services (TES).

Temporary Employment Services means any person who, for reward, procures for or provides to a client other persons who perform work for the client and who are remunerated by the TES.

Written comments can be submitted until 26 February.

For more information, please view the draft regulations by following this link:
https://www.gov.za/sites/default/files/gcis_document/201812/42140rg10902gon1432s.pdf

Draft Regulations on the employment of Foreign Nationals

An employer applying for a work visa or corporate visa, will have to submit the following:

  • Proof of publication of the advertisement in the national print media or website which must-
  1. Reflect the full particulars of the relevant print media or website and the date of publication;
  2. Clearly define the work opportunity offered and the duties;
  3. Measure at least 60 millimetres by 60 millimetres if published in print media;
  4. State the closing date for the application; and
  5. Not be older than four months at the time of the visa application, which period will be calculated from the closing date of the advertisement and must not have been removed from print media or website for less than thirty days.

In satisfying themselves that there is no other person in the Republic with suitable skills to fill a vacancy, the employer may make use of Public Employment Services or Private Employment Agencies.

The Department of Labour will refer the matched work seeker details, if applicable, to the Applicant (employer) within 10 working days of the date of receipt of application.

The applicant must submit a report of the referred work seeker within 10 working days of the date of receipt of the referral.

Written comments can be submitted until 27 January 2019.

For more information on the draft regulations, please follow the link:

https://www.gov.za/sites/default/files/gcis_document/201812/42140rg10902gon1433.pdf

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

COIDA Audit of ROE; COIDA Employer Registration Form; COIDA Application for change of nature of business

Roe Audit

Government Gazette No 42113 NO 1385 was published to inform employers that the Compensation Fund may select an object an Employer’s Return of Earnings (ROE) to an audit if an employer’s ROE was referred due to the following reasons:

  • Credit assessment or/and
  • A considerable decrease in the amount of Return of Earnings (ROE) declared from prior years

The following supporting documents will be required:

  • Affidavit (Reason for variance / Credit assessment)
  • Audited or Independently Reviewed Annual Financial Statements
  • Detailed Payroll Report
  • SARS EMP 501/ Tax Clearance
  • Manual Return of Earnings
  • Power of Attorney (Consultants, Attorney or any person appointed by an employer)

To view the official publication, please follow the link:

https://www.gov.za/sites/default/files/gcis_document/201812/42113gon1385.pdf

COIDA Employer Registration Form

Government Gazette No 42113 NO 1386 was published to inform employers of the prescribed Employer Registration Form in respect of an employer’s obligations to register with the Compensation Commissioner and to furnish him with particulars.

To view the official publication, please follow the link:
https://www.gov.za/sites/default/files/gcis_document/201812/42113gon1386.pdf

COIDA Application for change of nature of the business

Government Gazette No 42113 NO 1387 was published to inform employers of the requirements for the change of subclass and nature of business activities.

A business is classified according to the nature of industry the employer is engaged on. To change the nature of business, the following is required:

  • An Affidavit with the following information:
    Detailed description of the nature of business activities.
    Duties of employees.
  • Any other information which will contribute to the appropriate classification of the business activities.
  • Documents required depending on the type of business:
  • Proof of registration certificate with Companies and Intellectual Property Commission (CIPC) in respect of business entity, close corporation or company.
  • Letter of authority in respect of the trust.
  • Proof of registration certificate with the Department of Social Development in respect of Non-Profit Organizations
  • Certified copies of Director’s ID in respect of Companies
  • Certified Copies of ID of Members in respect of a Close Corporation
  • Certified copy of ID in respect of a Sole Owner
  • Proof of SARS registration
  • Proof of SARS Tax Clearance Certificate

Reasons for the change in nature of business can be due to the following:

The nature of a business changed (sometimes this happens gradually – over years) and the business is now classified in the wrong risk category. It could also be that the company was incorrectly classified from the beginning.

The change in business activities and re- classification of business entity will be effective from the date of receipt of request by the Compensation Fund.

To view the official publication, please follow the link:
https://www.gov.za/sites/default/files/gcis_document/201812/42113gon1387.pdf

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

POPI Act Regulations; BCEA Amended Regulations; LRA – Regulations, Guidelines, Code of Good Practice; Amendment of UI Act Regulations

POPI Act Regulations

Government Gazette 42110 NO. R 1383 was published to make the regulations known with respect to the processing of personal information. The Information Regulator has made the regulations in the Schedule as outlined in Section 112(2) of the Personal Protection of Information (POPI) Act, 2013.

The Regulations were made in respect of the following:

  • Objection to the processing of personal information
  • Request for correction or deletion of personal information
  • Responsibilities of Information Officers
  • Application for issuing a code of conduct
  • Request for data subject’s consent to processing personal information
  • Submission of complaint
  • Regulator acting as conciliator during the investigation
  • Pre-investigation proceedings of Regulator
  • Settlement of complaints
  • Assessments
  • Informing the parties of developments regarding the investigation.

The Regulations relating to the Protection of Personal Information, 2018 will commence on a date to be determined by the Regulator by proclamation in the Government Gazette.

To view the official publication, please follow the link:
https://www.gov.za/sites/default/files/gcis_document/201812/42110rg10897gon1383.pdf

Basic Conditions of Employment Act amendment of Regulation 2

Government Gazette 42124 NO. 1402 was published to amend the regulations as set out in the Schedule in the Basic Conditions of Employment Act (BCEA) under Section 68(1).

Section 68(1) of the BCEA determines that a labour inspector who has reasonable grounds to believe that an employer has not complied with any provision of the Act may attempt to secure a written undertaking by the employer to comply with the provision.

The Schedule has been amended to:

  • Amend BCEA 1A (Basic Conditions of Employment Act, 1997 Summary to be kept by an Employer in terms of Section 30 of the Act) to provide for the amendment of:

The substitution of form BCEA 9 (Department of Labour Written Undertaking)
The substitution of form BCEA 12 (Department of Labour Compliance Order Issued in terms of Section 69(1) of the Act).

Section 69(1) of the Act determines that a labour inspector who has reasonable grounds to believe that an employer has not complied with any provision of the Act may issue a compliance order.

To view the official publication, please follow the link:
https://www.gov.za/sites/default/files/gcis_document/201812/42124gon1402.pdf

Labour Relations Act – Various Regulations, Guidelines and Code of Good Practice changes

Government Gazette 42121 was published to inform employers and employees of the following:

  • GG 42121 NO R 1393 – Section 208 of the Labour Relations Amendment Act stipulates that the Minister of Labour may, after consulting the National Economic Development and Labour Council (NEDLAC), make regulations. Picketing Regulations has been published and will take effect 01 January 2019.
  • GG 42121 NO R 1394 – This notice serves to confirm the repeal of the Code of Good Practice on the Handling of Sexual Harassment Cases given under section 203(2) of the Labour Relations Act, 1995 (Act No. 66 of 1995), effective immediately. The Amended Code of Good Practice on the Handling of Sexual Harassment Cases in the Workplace has already been published in August 2005.
  • GG 42121 NO R 1395 – Section 95(8) of the Labour Relations Act, 1995 (Act No. 66 of 1995) stipulates that the Minister of Labour may publish guidelines to be applied by the registrar in determining whether an applicant is a genuine trade union or a genuine employers’ organisation. The guidelines issued and published under Government Notice No. R. 1446 of 10 October 2003, has been withdrawn with effect from 31 December 2018. New guidelines have been issued in notice R 1395 as part of the section Registration and Regulation of Trade Unions and Employers’ Organisations, effective immediately.
  • GG 42121 NO R 1396 – Section 203 of the Labour Relations Act, 1995 stipulates that NEDLAC may prepare and issue codes of good practice and change or replace any code of good practice. Notice R 1396 was published to issue Code of Good Practice in respect of Collective Bargaining, Industrial Action and Picketing, effective immediately.
  • GG 42121 NO R 1397 – Section 95(8) and (9) of the Labour Relations Amendment Act, 2018, stipulates that the Minister of Labour may, after consultation with NEDLAC, publish guidelines on balloting (any system of voting by members that is recorded and in secret) for strikes or lockouts. Notice R 1397 was published to issue the guidelines, effective immediately.

To view the official publications, please follow the respective links:

https://www.gov.za/sites/default/files/gcis_document/201812/42121rg10899gon1393.pdf

https://www.gov.za/sites/default/files/gcis_document/201812/42121rg10899gon1394.pdf

https://www.gov.za/sites/default/files/gcis_document/201812/42121rg10899gon1395.pdf

https://www.gov.za/sites/default/files/gcis_document/201812/42121rg10899gon1396s.pdf

https://www.gov.za/sites/default/files/gcis_document/201812/42121rg10899gon1397.pdf

Amendment of Unemployment Insurance Act Regulations

After consultation with the Unemployment Insurance Board, the Minister of Labour has made the regulations in the Schedule, as published in Government Gazette 42140 No R 1434.

The main amendments to the Regulations in the Schedule are as follows:

  • A “small enterprise” definition has been added to the regulation as contemplated in section 1 of the National Small Enterprise Act, 1996 (No. 102 of 1996).
  • The UI Amendment Act added section 12(1B) to the Unemployment Insurance Act to provide that a contributor who loses a portion of his income due to reduced working time is entitled to benefits (despite still being employed) if the contributor’s total income falls below the benefit level that the contributor would have received if he had become wholly unemployed.
  • Contributors may nominate a beneficiary by submitting the new nomination form UI 53 to the Fund immediately on commencement of employment. If a contributor did not, before his or her death, complete the nomination form at the commencement of new employment, the Fund must accept a nomination form completed at the previous employer as valid.
  • Employers must provide the Commissioner with the information in terms of their employees by submitting the declaration electronically or by completing form UI 19.
  • Domestic and small enterprise employers may declare employees and contributions annually provided that the contributor’s services are not terminated in which case the declaration must be done on termination.
  • Forms UI 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 3, 4, 5, 6A and 19 have been changed. Examples of the forms included in Government Gazette No. 42140.

Form UI 53 (beneficiaries) has been added by the regulation.

To view the official publication, please follow the link:

https://www.gov.za/sites/default/files/gcis_document/201812/42140rg10902gon1434.pdf 

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

Zimbabwe 2019 Budget Highlights

Highlights of the 2019 budget speech delivered by Finance Minister Mthuli Ncube:

  • Budget deficit of $1,5 billion or 5% of GDP
  • Growth in 2019 at about 3,1%
  • Total revenues for 2019 projected at $6,6 billion
  • Total expenditures for 2019 projected at $8,16 billion
  • Inflationary pressure to stabilise in 2019
  • Increase excise duty on cigarettes from US$20 to US$25 per 1000 sticks
  • Introduce customs duty on motor vehicles and other selected goods in foreign currency
  • Companies that collect VAT or any other taxes in United States dollars or any other currency to remit VAT using the same mode of payment
  • Increase Excise Duty by 7 cents per litre on diesel & paraffin and 6.5 cents on petrol to reduce the arbitrage opportunities.

Tax Relief Measures:

  • Review the tax-free threshold from US$300 to US$350 and further widen the tax bands from US$351 to US$20,000, above which income is taxed at the highest marginal tax rate of 45%
  • Provide for further exemptions from the 2% Intermediated Money Transfer Tax
  • Suspend customs duty and also exempt from VAT, sanitary ware products for a period of 12 months
  • Suspension of customs duty on selected goods used by the physically challenged persons
  • Redirect 5% of Third Party Insurance Cover to an Accident Compensation Fund

Government Ministries and Departments to remit all revenue collected into the Consolidated Revenue Fund

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

Regulations to the National Minimum Wage Act, 2018

Government Gazette 42124 NO. 1401 was published to provide for the regulations in terms of Section 16 of the National Minimum Wage (NMW) Act, 2018.

Sections 16 of the NMW Act seek to provide for a form and manner in which to apply for the exemption of the National Minimum Wage as described in Section 15(1) of the NMW Act.

The Regulations for the application of an exemption provide for the following:

  • Definitions
  • The Application for exemption from paying the national minimum wage
  • Legal effect of Exemption Notice
  • Display and copies of exemption notice
  • Withdrawal of exemption notice
  • National Minimum Wage Exemption System
  • These Regulations will take effect on 01 January 2019, together with the effective date of the National Minimum Wage Act.

To view the official publication, please follow the link:
https://www.gov.za/sites/default/files/gcis_document/201812/42124gon1401.pdf

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2019 CRS Technologies (Pty)Ltd. All Rights Reserved.

Commencement of the new NMW Act and amended LRA

Government Gazette 42104 No. R 1378 has been published to announce 01 January 2019 as the date on which the National Minimum Wage Act, 2018 will come into operation.

At the same time, Government Gazette 42104 No. R 1377 has been published to announce 01 January 2019 as the date on which the Labour Relations Amendment Act, 2018 will come into operation.

The date of commencement for the Labour Laws Amendment Act, 2018 remains to be determined by the president by proclamation in the Gazette.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2018 CRS Technologies (Pty)Ltd. All Rights Reserved.

Compensation for Occupational Injuries and Diseases Act: ROE Maximum Earning amount increase

Department of Labour published Government Gazette notice no. 42092 on 7 December 2018 in respect of the increase of the maximum amount of earnings on which the assessment of an employer will be calculated. The effective date is 1 March 2019.

The prescribed amount under Section 83(8) of the Compensation for Occupational Injuries and Diseases Act No 130 of 1993 (COIDA) has been increased to R458 520 per annum.

Currently, the maximum amount of earnings is R430 944 per annum.

 

Contact our legislation team at info@crs.co.za if you require any additional information.

© 2018 CRS Technologies (Pty)Ltd. All Rights Reserved.