South Africa: Reminder for employers to submit employees’ annual tax reconciliations

South Africa: Employees’ tax reconciliations

Employers and third-parties (such as banks) are required to provide the South African Revenue Service (SARS) with relevant data in order to pre-populate the annual income tax returns (forms ITR12) for natural persons before the start of the filing season for the annual tax return for natural persons (usually beginning in July/August following the February tax year-end).

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Employers must by 31 May 2021, submit their employees’ annual tax reconciliation (form EMP 501) to SARS, in order to mitigate the risk of penalties on the late submission of this filing obligation. Part of this employer reconciliation process is for employers to issue the 2020/2021 employees’ tax certificates (forms IRP5) which will be used to pre-populate the ITR12s.

Failure to take timely action can result in penalties for employers.

Read a March 2021 report [PDF 361 KB] prepared by the KPMG member firm in South Africa

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