Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 24 views

    Get Letter

    Uploaded by

    Jo anne Jo anne
    This document provides information about Employees' Tax (PAYE) deductions from pensions for the 2023-2024 tax year. It explains that SARS calculates a fixed PAYE deduction rate for pensioners with multiple income sources to ensure accurate tax is deducted monthly. Pensioners can opt out of this service and continue using the normal PAYE rate. Unless opted out, the pension administrator will use the fixed rate provided by SARS to deduct PAYE from March. The fixed rate aims to avoid a large tax bill at year's end but may be higher than the normal rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Get Letter

    Uploaded by

    Jo anne Jo anne
    24 views2 pages
    This document provides information about Employees' Tax (PAYE) deductions from pensions for the 2023-2024 tax year. It explains that SARS calculates a fixed PAYE deduction rate for pensioners with multiple income sources to ensure accurate tax is deducted monthly. Pensioners can opt out of this service and continue using the normal PAYE rate. Unless opted out, the pension administrator will use the fixed rate provided by SARS to deduct PAYE from March. The fixed rate aims to avoid a large tax bill at year's end but may be higher than the normal rate.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides information about Employees' Tax (PAYE) deductions from pensions for the 2023-2024 tax year. It explains that SARS calculates a fixed PAYE deduction rate for pensioners with multiple income sources to ensure accurate tax is deducted monthly. Pensioners can opt out of this service and continue using the normal PAYE rate. Unless opted out, the pension administrator will use the fixed rate provided by SARS to deduct PAYE from March. The fixed rate aims to avoid a large tax bill at year's end but may be higher than the normal rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views2 pages

    Get Letter

    Uploaded by

    Jo anne Jo anne
    This document provides information about Employees' Tax (PAYE) deductions from pensions for the 2023-2024 tax year. It explains that SARS calculates a fixed PAYE deduction rate for pensioners with multiple income sources to ensure accurate tax is deducted monthly. Pensioners can opt out of this service and continue using the normal PAYE rate. Unless opted out, the pension administrator will use the fixed rate provided by SARS to deduct PAYE from March. The fixed rate aims to avoid a large tax bill at year's end but may be higher than the normal rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    EMPLOYEES' TAX (PAYE)

    ON YOUR PENSION OR ANNUITY FOR THE TAX


    PERIOD 1 MARCH 2023 TO 29 FEBRUARY 2024

    Enquiries should be addressed to SARS:


    Contact Detail
    SARS Contact Centre Tel: 0800 00 SARS (7277)
    Alberton SARS online: www.sars.gov.za
    JJ SAAYMAN 1528

    32 CURLEWSTRAAT
    D'ALMEIDA Details
    MOSSEL BAY Taxpayer Reference Number: 1146037104 Always quote this reference
    number when contacting SARS
    Case Number: 455422776
    6500 Issue Date: 2023/03/22

    Dear Taxpayer

    EMPLOYEES' TAX (PAYE) - ON YOUR PENSION OR ANNUITY FOR THE TAX PERIOD 1 MARCH 2023 TO 29 FEBRUARY 2024

    Where a pensioner has one source of income during a tax year, our employees' tax (PAYE) deduction system ensures the correct PAYE
    deductions from a pension.

    However, where a pensioner is in receipt of more than one source of income, the different sources of income are combined at the end of
    the tax year to determine the correct amount of tax due. The sum of the income typically places the taxpayer into a higher tax bracket,
    which normally creates tax due to SARS at year-end.

    This is not a new principle and it applies to everyone, not only pensioners.

    As a service to pensioners with more than one source of income, legislation makes provision for SARS to determine a more accurate
    monthly PAYE deduction tax rate. We do this by using the latest data available to SARS and issuing that PAYE tax rate to your pension
    administrator. We refer to this as a fixed PAYE deduction rate. Your pension administrator will then deduct a more accurate amount of
    PAYE from your pension. The aim of the more accurate fixed PAYE deduction rate is to ensure that you are not faced with a significant
    tax debt to SARS at year end.

    That said, it is ultimately your decision whether to make use of this service. If, for example, you are already saving towards a tax debt at
    year end, then you may wish to opt out of this service. You can opt out of this service by informing your pension administrator of your
    choice to opt out. If you opted-out in the previous tax year, your choice will remain unless you inform your pension administrator in writing
    that you wish to participate in this service.

    In summary:

    Unless you wish to opt out, you do not have to do anything, because SARS will provide your pension administrator with a fixed PAYE
    deduction rate mentioned above that is applicable to you;

    SARS will calculate and provide the fixed PAYE deduction rate to your pension administrator during March this year;

    SARS calculates the fixed PAYE deduction rate by taking into account other pensions and/or other employment income;

    Unless you opt out, your pension administrator will use the fixed PAYE deduction rate to deduct PAYE from your pension;

    If you already opted out of the service in the previous tax year, your pension administrator will use the normal PAYE deduction rate to
    deduct PAYE from your pension, unless you inform them in writing that you wish to participate in this service;

    The fixed PAYE deduction rate provided by SARS will be valid for the whole tax year, but you may elect to opt-out during any time by
    informing your pension administrator of your choice to opt out in writing;

    The fixed PAYE deduction rate determined by SARS is likely to be higher than what you are used to, but in return you are likely to avoid
    a significant tax bill at the end of the tax year;

    JJ SAAYMAN 18192056

    1146037104 2023

    WD01 : 01/02

    WD01 WD01

    Page: 01/02
    If you participate in this service you may at any time request your pension administrator to deduct PAYE at a tax rate higher than the
    fixed PAYE deduction rate provided by SARS. Similarly, if you are not participating in this service you may at any time request your
    pension administrator to deduct PAYE at a rate that is higher than the normal PAYE deduction rates.

    Sincerely

    ON BEHALF OF THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE

    JJ SAAYMAN 18192056

    1146037104 2023

    WD01 : 02/02

    WD01 WD01

    Page: 02/02

    You might also like