Industry updates | June 2021
Please take note of the following industry updates that may be relevant to you and your business.
COMPLIANCE AND ADMINISTRATION
Due dates for reporting and payments- June 2021:
POPIA COMPLIANCE
With 1 July 2021 looming, we all ought to be aware of and compliant with the stringent provisions of the Protection of Personal Information Act of 2013 (“the POPI Act”). Failure to comply with the provisions of the Act and the regulations could result in severe consequences.
The POPI Act is a new all-inclusive piece of legislation that safeguards the integrity and sensitivity of personal information. Organisations are required to carefully manage the data capture, storage and processing of Personal Information within the framework as set out in the Act.
Please get in touch with the Stratfinn team for step-by-step assistance in achieving your company’s compliance.
TAX ADMINISTRATION
Unemployment insurance fund “UIF” amendments:
A UIF contribution increase has been announced, effective from 1 June 2021. The contributions to the unemployment insurance fund must be determined on remuneration not exceeding R17 712 per month (previously R 14 872 per month).
Retirement annuity amendments:
The minimum value for paid-up retirement annuities has been increased retrospectively from R7 000 to R15 000 from 1 March 2021. Therefore, if a retirement annuity fund member stops contributing to the fund, and their fund value is less than R15 000, they may withdraw the benefit.
2021 Income Tax filing season:
Income Tax Filing Season 2021 dates
· For non- provisional taxpayers- 1 July 2021 to 23 November 2021
· For provisional taxpayers- 1 July 2021 to 31 January 2022
‘Auto-assessment’: SARS has stated that a significant number of individual taxpayers will be ‘auto-assessed’. The process will start in July 2021. SARS will send affected taxpayers an SMS if they have been selected for an auto assessment. Before accepting your auto- assessment, please ensure that you have consulted your tax advisor.
NOTES FROM US
The collection drive currently underway by our revenue authorities has far-reaching consequences for non- compliant taxpayers. We would like to encourage you to stay on top of your compliance status with Sars.
To protect yourself from Sars, it remains the best strategy that you always ensure compliance. Where you find yourself on the wrong side of Sars, there is a first-mover advantage in seeking the appropriate tax advisory, ensuring the necessary steps are taken to protect both yourself and your honeypot from the piercing sting of Sars. However, where things do go wrong, Sars must be engaged legally, and we generally find it agreeable when a correct tax strategy is followed.
As a rule of thumb, all correspondence received from Sars should be immediately addressed, by a qualified tax specialist, which will not only serve to safeguard the taxpayer against Sars implementing collection measures but allowing the taxpayer to be correctly advised on the most appropriate solution to ensure their tax compliance.
Even with the noose being pulled tighter, there is a way to escape the sting of Sars and ensure your tax compliance. Should you have any queries or concerns we are always available to you for professional guidance and advice.
- Domonique Ramos | 7 June 2021