Third Parties (for example attorneys, medical schemes, fund administrators and estate agents) are required by law to send information to SARS via a return. This means that a bank, for example, must provide SARS data pertaining to interest paid on a savings account to SARS. This information is used by SARS for various purposes such as to confirm whether a person has filed the correct information on his/her tax return and thus determining a person’s tax liability.
These submissions are split into two periods;
• 6 months submission (March to 31 August) to be submitted by 31 October; and
• Full year submission (1 March to 28/29 February), must be submitted by 31 May.
Who must submit information to SARS?
SARS has issued a revised third party notice in March 2018 and the following persons are required to submit a return.
- Banks regulated by the Registrar of Banks
- Co-operative Banks regulated by the Co-operative Banks Development Agency
- The South African Postbank Limited
- Financial institutions regulated by the executive officer as defined in the Financial Services Board Act
- Companies listed on any exchange licensed under the Financial Markets Act and connected persons in relation to those companies, that issue bonds, debentures or other interest bearing instruments
- State-owned companies, as defined in section 1 of the Companies Act
- Organs of state, as defined in section 239 of the Constitution
- Any person that purchase any livestock, produce, timber ,ore, mineral or precious stones from a primary producer other than on retail basis
- Any medical scheme registered under section 24(1) of the Medical Schemes Act
- Any person, who for their own account carries on business as an estate agent as defined in the Estate Agency Affairs Act and who pays to, or receives on behalf of a third party any amount in respect of an investment/interest/rental
- Any person, who for their own account practises as an attorney as defined in section 1 of the Attorneys Act and who pays to, or receives on behalf of a third party any amount in respect of an investment/interest/rental
- A person liable to pay withholding tax on interest in terms of section 50F(2) of the Income Tax Act
- A person who in terms of section 12T (8) of the Income Tax Act, and that issued a financial instrument or policy in respect of a tax free investment.
What must be submitted?
Each person depending on category needs to submit an IT3 form to SARS. These submissions are done electronically using the HTTPS Channel or Connect Direct or E-filing depending on the number of records to be submitted.
Should you require assistance with the submissions or further information you can contact Tracey Jones at C2M Tax Assurance on 021 914 0261 or email email@example.com.