“The SARS branch offices will extend working days to Saturdays for the next two weekends – 14 and 21 November – in anticipation of an increase in number of taxpayers who will file their returns,” said SARS spokesperson Sandile Memela on Wednesday.

Ahead of the November 27 tax season deadline, SARS offices on two specific dates would be open from 8am to 1pm,across 25 branches nationwide.

“The purpose is to assist taxpayers with their returns. Taxpayers are to note that only issues relating to tax return submissions will be dealt with,” said Memela, urging taxpayers to submit their returns as soon as possible.

Those planning to make use of the extended weekend hours were encourage to visit the SARS website for branch details while anyone seeking clarity could contact the SARS contact centre on 0800 00 7277

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The National Treasury states that, in the period from 1 January 2014 to the end of February 2015, 31 825 employers had claimed the incentive for at least 270 000 employees at a total cost of R2.8 billion. The incentive is set to expire on 31 December 2016, pending a review from the National Treasury.

Cooper believes the law must be renewed next year, but with some changes. because the youth unemployment rate is 52%, which is four times the rate in sub-Saharan Africa as a whole.

“So it qualifies as a crisis,” he says.

Despite he benefits of the ETI, however, he says there is no reliable data on how many would have been employed if the scheme did not exist.

“There is reason to fear that some employers are profiting from the scheme by claiming the incentives for workers they would have employed in any case,” says Cooper. In other words, they are benefiting from a taxpayer-funded tax break without necessarily creating new jobs.

Phumza Macanda, National Treasury spokesperson, says that is something that was anticipated when the policy was drafter, and still achieves its intention of getting young people employed.

“It is expected that some employment for which an employer claims the incentive would have occurred in the absence of the subsidy… It is not “exploitation” in our view, this is n anticipated part of the policy and has been described in the previous (policy document discussions),” says Macanda.

There is no other way.

Given the seriousness of the employment problem, it would come as a surprise if the ETI was not renewed for another term. Especially now that no job losses have been reported as a result of the incentive so far.

Before its inception, trade unions fought strongly against arguing it would cause employers to lay off older employees to replace them with younger ones, subsidized by the state and therefore cheaper to employ. According to Macanda, however, the data does not reflect this.

“The incentive will be reviewed before the end of 2016 when more tax data becomes available for analysis to investigate the success of the scheme and what possible amendments could be used to improve its effectiveness.”

Cooper has some ideas on that

The ETI refund is only paid to employers that are tax compliant. This means that all tax returns have been submitted and there is no outstanding tax debt. But, if it were up to him, Cooper says he would remove this requirement, or limit it substantially to reduce the risk of being penalized for inadvertently claiming ETI while not tax compliant.

He would also remove the minimum wage compliance test. Currently, employers don’t qualify for ETI if the employee is paid a wage below R2 000 per month, or below the minimum wage for that sector.

“At the very least make it clear that an hourly wage rate can be used for the wage qualifying test. Because many people do not even understand what ‘wage’ is and confuse it with ‘remuneration’,” says Cooper.

Cooper also thinks the ETI should be made more flexible so that employers are allowed to appoint young people on a probationary basis so that employers can employ young people without fearing that it will be difficult and expensive to dismiss them if things don’t work out.

ETI states that an employee must be employed for at least a full month and at least 160 employed hours for an employer to qualify, but Cooper feels this is too loosely defined.

“They should simplify the current definition for the hours per month an employee under the ETI is ‘in employment’. Some people are confused by the distinction between the hours someone worked in a month and the hours they were employed.”

But, ultimately, Cooper says the ETI can only be a partial answer to the youth unemployment crisis. Because South Africa’s unemployment problem will persist as long as there is a lack of quality education.”

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The 2015 Budget has already been rolled out and it contained a proposal to reduce the remuneration threshold against which unemployment contributions are calculated from the monthly amount of R14 872 to R1 000.

In connection with the challenging economic environment that has led to a decrease in economic growth, it is considered that a reduction in UIF contributions wil provide “significant” support to households and employers.

If it is implemented, both employers and employees will be required to pay a maximum or R10 each per month down from the current maximum of R149.72. This reduction is proposed to come into effect on 1 April 2014 and it would be reconsidered or the next financial year, shortly before 1 April 2016.
The measure will provide roughly R15bn in relief to employees and employers. The reduction in contributions will draw down on the UIF’s accumulated surplus, which is currently more than R72bn and it is expected to boost the economy without requiring the Government to issue additional debt.
The Ministry has invested public comments to be submitted by 20 March 2015.

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This particular report was released at the 15yh African Ministerial Conference on the Environment. It follows in the footsteps of the UN Environmental Program’s Global Adaptation Gap Report 2014. It found that the cost of introducing the changes needed in developing countries in order to reduce emissions, could be as high as US$ 360 to 500bn per year by 2050.

The report warns that African countries are particularly exposed to potential infrastructure damage from global warming. An abitious program of damage limitation will be needed immediately. It states that “given the increasing severity of the adaptation challenge posed by climate change in Africa, no stone should be left unturned looking for solutions for closing the adaptation gap.”

The reports says that Africa will not be able to depend on global contributions in order to meet this cost. Governments need to consider methods of raising revenue. There are four potential options that the report considers. This is the mining sector, on financial transactions, trade or tourism.

It stresses the urgency of early action by the concerned nations.The UN doesn’t state anything that global warming is progressing more rapidly that previously projected. It states the following “even if such regional revenues were generated by the application of these levies, adaptation costs would exceed the revenue generation capacity as early as 2020.”

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Security transfer tax is levied on every transfer of a security . It was implemented from 1 July 2007 under the Securities Transfer Tax Act, No.25 of 2007 and the Securities Transfer Tax Administration Act, No.26 of 2007.

A security means any share or depository receipt in a company, or member’s interest in a close corporation.

What exactly is securities transfer tax levied on?

Every transfer of any security that is issued by a CC or a company incorporated within the country or a company that’s incorporated outside the country but listed on the exchange.

It is also levied on any transfer of securities from a member’s bank restricted, unrestricted and security restricted stock account to a member’s general restricted stock account.

The current rate at which securities transfer tax is levied on is 0.25%.

Why was Securities Transfer Tax created?

The Securities Transfer Tax Act was created to replace to different tax types on securities with a single tax for any transfer of listed and unlisted securities in order to simplify its administration.

Who has to pay Securities Transfer Tax?

The tax applies to who purchases or transfers listed and unlisted securities.

Please take note of the following:

• When listed securities are purchased or transferred through or from a member, the member is liable for the payment of the tax. That member may recover the tax payable from the person to whom the securities were sold or transferred.
• The transfer of any other listed security will result in the person to whom the security is sold or transferred, to be liable for the payment of the tax. The tax must be paid by the member that holds the security. If that is not the case, the company which issued the security, must pay the tax.
• When an unlisted security is transferred, the tax must be paid by the company which issued it. The company may recover the tax from the person to whom they transferred it.

What steps should you take?

1. When an unlisted security is transferred, the individual must inform the company which issued it within 30 days from the date of transfer.
2. An electronic declaration must be sent in the form and way the Commissioner has set. This is applicable for the transfer of every security on the SARSe-TT system and it must be sent within the time listed below.
3. If the securities transfer tax has not been paid in full within the set period, there will be interest charged at the set rate. In accordance with Chapter 15 and 16 of the Tax Administration Act, 2011, a penalty will be applied. This is applicable if any amount remains unpaid after the period or if the taxpayer fails to or makes an incorrect statement on the declaration form.

When should securities transfer tax be paid?

• If listed securities are transferred, it must be paid by the 14th day of the month following the month during which the transfer occurred.
• When an unlisted security is transferred, the payment must be made within two moth from the end of the month in which the transfer took place.

How should it be paid?

Securities Transfer Tax can only be paid by an electronic payment. This is done by using the SARSe-STT system.

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Tax Rates for 2015 is as follows:

Personal Tax

Income Tax

The amount an individual can earn before they are required to pay tax has been increased for the tax year that runs from 1 March 2015 to 29 February 2016.

Tax rebate increases

Sin Tax

Excise duties on alcoholic beverages will increase between 4.8% and 8.5%. There are some reforms under consideration that will provide excise duty relief to wine-based spirits.

The increases in excise duties are as follows:

Alcohol:

Tobacco

Fuel levy

This will increase fuel prices by 80.5c.

Medical Schemes

The monthly medical scheme contributions tax credits will increase from 1 March 2015. The first two beneficiaries will be increased from R257 to R270 per month and each additional beneficiary will be increased from R172 to R181 per month. Medical tax credits which are related to medical scheme contributions, will be taken into account for both PAYE and provisional tax purposes.

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How much tax should I pay?

You pay tax when your income is above the agreed amount per year and you pay all of your working life up to the age of 65. This tax is determined by SARS.

When do I pay

Tax work in tax years. The year starts at 1 March and end on 28 February but in a leap year, it will end on 29 February. You will have to submit a return in Tax Season.

Will other income be taxed?

Yes. All of us pay tax on other income we may have. Here is a small list of examples:

• Income from business activities.
• Rental Income.
• Investment income.

What must I do?

You have to register as a taxpayer with SARS. This will require you to complete a registration form. Once you have completed the form, you need to visit your local SARS branch and they will complete the registration.

What does my employer do?

Your employer withholds Employees tax from your salary and pay it to SARS monthly. There are certain amount which can be deducted from your salary before Employee Tax is worked out such as your pension, medical aid and some insurance premiums.

How does the process work?

Here is a small chart which will show you how the tax process works:

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