Page 336 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
‘tax period’, in relation to any employee, means any unbroken period in the year of assessment during which the employee was employed in the Republic in standard employment by any one employer or during which any annuity was paid or became payable to him by any one employer or, where the Commissioner has in relation to the employment of any employee issued a directive as contemplated in paragraph (c) of the de nition of ‘standard employment’, such period as the Commissioner considers appropriate in the circumstances: Provided that where any employer has for the purposes of paragraph 15 applied for separate registration of branches of his undertaking, each such branch shall for the purposes of this de nition be deemed at the option of the employer to be a separate employer;
[De nition of ‘tax period’ substituted by s. 22 (a) of Act 70 of 1989 and amended by s. 47 (a) of Act 101 of 1990, by s. 40 (a) of Act 21 of 1995 and by s. 35 (a) of Act 36 of 1996.]
(2) Notwithstanding the provisions of paragraphs 9 and 10, the amount of employees’ tax required to be deducted or withheld from any net remuneration paid or payable by an employer to an employee during any tax period shall— (a) to the extent that the annual equivalent of all such net remuneration so paid or payable during the tax period does
not exceed R60 000; or
[Item (a) substituted by s. 47 (f) of Act 101 of 1990 and amended by s. 48 of Act 28 of 1997, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(b) where such net remuneration includes any annual payment (being an amount of net remuneration which in terms of the employee’s service conditions or in accordance with the employer’s practice is payable to the employee once annually or which is determined without reference to any period), to the extent that the sum of all such annual payments and the annual equivalent of all other net remuneration so paid or payable during the tax period does not exceed R60 000,
[Item (b) substituted by s. 47 (f) of Act 101 of 1990 and amended by s. 48 of Act 28 of 1997, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
be an amount (to be known as Standard Income Tax on Employees) which shall, subject to the provisions of subparagraphs (2A) and (4), be determined by the employer at the end of the tax period under the provisions of subparagraph (3).
[Sub-para. (2) substituted by s. 22 (g) of Act 70 of 1989 and amended by s. 46 (d) of Act 129 of 1991 and by s. 20 of Act 8 of 2010.]
(2A) Where at the end of a tax period the total amount of employees’ tax which has been deducted or withheld by an employer from the net remuneration paid or payable by him or her to an employee during such tax period exceeds or falls short of the amount of Standard Income Tax on Employees determinable under subparagraph (3) in relation to such net remuneration by an amount not exceeding R5 or such other amount as the Commissioner may determine by Notice in the Gazette, the said total amount of employees’ tax shall at the option of the employer be deemed to be the amount of Standard Income Tax on Employees determinable in relation to such net remuneration under the said subparagraph.
[Sub-para. (2A) inserted by s. 22 (h) of Act 70 of 1989 and substituted by s. 57 (1) (b) of Act 8 of 2007.]
(3) The amount of Standard Income Tax on Employees to be deducted or withheld from any net remuneration under the provisions of subparagraph (2) shall, unless the Commissioner otherwise directs for purposes of subparagraph
(4)—
(a) in the case of any net remuneration other than an annual payment referred to in subparagraph (2) (b), be an amount
equal to the annual tax determined in relation to so much of the annual equivalent of such net remuneration as
does not exceed R60 000 divided by the ratio which a full year bears to the tax period; and
[Item (a) substituted by s. 22 (i) of Act 70 of 1989 and by s. 47 (g) of Act 101 of 1990 and amended by s. 48 of Act 28 of 1997, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(b) in the case of any annual payment referred to in subparagraph (2) (b), be an amount determined in accordance with the formula—
S = T1 – T2
in which formula—
(i) ‘S’ represents the amount of Standard Income Tax on Employees to be determined;
(ii) ‘T1’ represents the annual tax determined in relation to an amount (not exceeding R60 000) equal to the sum of all such annual payments and the annual equivalent of all other net remuneration paid or payable by the employer to the employee during the tax period; and
[Subitem (ii) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(iii) ‘T2’ represents the annual tax determined in relation to an amount (not exceeding R60 000) equal to the
said annual equivalent.
[Subitem (iii) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
[Item (b) amended by s. 22 (j) of Act 70 of 1989, substituted by s. 47 (g) of Act 101 of 1990 and amended by s. 48 of
Act 28 of 1997.]
[Sub-para. (3) amended by s. 46 (d) of Act 129 of 1991 and by s. 44 (1) (b) of Act 3 of 2008.]
(4) Where—
(a) the taxpayer is entitled to—
(i) a deduction under section 11 (k) or (n) of this Act in respect of any contribution to a pension fund or retirement annuity fund or a deduction in respect of any premium paid in terms of an insurance policy contemplated in paragraph 2 (4), which has not been taken into account by his or her employer in the determination of the balance contemplated in the de nition of ‘net remuneration’ in subparagraph (1); or
(ii) a deduction under section 18 of this Act, and the taxpayer’s taxable income derived otherwise than from net remuneration cannot be reduced by the full amount of any such deduction; or
328 SAIT CompendIum oF TAx LegISLATIon VoLume 1