South Africa - PAYE and ETI Amendments

South Africa - PAYE and ETI Amendments

PAYE and ETI amendments based on the Tax Administration Laws Amendment Act, 2022 and the Taxation Laws Amendment Act, 2022, which were promulgated on 5 January 2023.
  • From 1 March 2023, variable remuneration will include payments which are based on the employee’s wok performance (other than commission and bonuses).
  • From 1 March 2023, variable remuneration paid to a deceased employee should be taxed on the day prior to the date of death.
  • Effective 1 September 2022, the Employment Tax Incentive Act (ETIA) and Tax Administration Act (TAA) is amended to facilitate the imposition of understatement penalties on ETI reimbursements incorrectly claimed.
  • Effective 1 March 2021, annuities received from a public sector pension fund that operates similarly to a provident fund is included in remuneration.



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