Cape Town –
The South African Revenue Service has clarified a statement from their Minister
Pravin Gordhan, making it clear that when he told MPs in the debate on his
departmental budget that all those people receiving any form of employment
income – including those below the tax threshold - need to register for tax, he did not really mean it.
Mark Kingon,
Sars general manager for operations support, said later on Tuesday that
domestic workers will be excluded.
"The
obvious exception to that is a person who is in a domestic (situation),"
he said.
Employers
who currently do not submit IRP5s for their employees will not be required to
start doing so – unless, of course their employees are paid above the taxable
level.
Kingon said
that Sars does not believe that any change in the law will be required.
Under
present law there is an obligation on earners to register with Sars, but there
is nothing to stop the tax authority from registering who they like.
Kingon also
explained that the process of registration will be done through the current
Easy-File system, with the employer giving details of every employee, and Sars
putting them all on the register. It is expected to double the number of
workers registered.
- I-Net Bridge