Types of Tax
What is a IRP6
An IRP6 is a Tax Return completed by provisional taxpayers, twice or (optionally) three times during the tax year to declare their income.
Who must submit an IRP6?
Provisional taxpayers are people who earn income other than a salary / remuneration on which no income tax has been deducted/withheld. They will need to declare their total estimate taxable income on their provisional tax returns (IRP6) and pay the applicable tax thereon.
What is A IRP5?
An IRP5 is the employee's tax certificate that is issued to him/her at the end of each tax year detailing all employer/employee related incomes, deductions and related taxes. It is used by the employee specifically to complete his/her income tax return for a specific year
What is PAYE?
Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE.
The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer return (EMP201). The EMP201 is a payment return in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable. A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.
EMP501
An EMP501 reconciliation is a report of all your employee's earnings, which must be submitted to SARS. Employers are required to reconcile the payroll taxes liabilities (PAYE, SDL and UIF) which is declared on a monthly basis on the Employer declarations (EMP201).