Third Party Data Submission To SARS

Third parties such as banks, medical schemes, fund administrators etc. are obliged by law to send information or data to SARS via a return.  This information is then used  to analyse and confirm whether a person has filed or submitted the correct information in his/her tax return and to ensure that the information or documents are compliant with the provisions of the relevant tax Act and to determine a person’s tax liability. An example of this would be, when a bank provides information to SARS pertaining to the interest paid on savings in taxpayers’ accounts.

The following data types are submitted by the third parties:

  • Withholding tax on interest
  • Automatic Exchange of Information (FATCA and CRS)
  • Dividend tax
  • IT3 (b/c/e/s)
  • Medical scheme contributions
  • Insurance payment

The list of legal persons that are required to submit this information is detailed below:

  • Attorneys
Any person, who for their own account practices as an attorney as defined in section 1 of the Attorneys Act, 1979, and who pays to or receives on behalf of a third party any amount in respect of an investment, interest or the rental of property as per the Government Gazette No. 36346 of 5 April 2013.
  • Banks
Banks regulated by the Registrar of Banks in terms of the Banks Act, 1990, or the Mutual Banks Act, 1993 as per the Government Gazette No. 36346 of 5 April 2013.
  • Companies listed on the JSE
Companies listed on the JSE, and connected persons in relation to the companies, that issue bonds, debentures or similar financial instruments as per the Government Gazette No. 36346 of 5 April 2013.
  • Co-operatives and persons purchasing from primary producers
Any person (including a co-operative as defined in section 1 of the Income Tax Act, 1962) who purchases any livestock, produce, timber, ore, mineral or precious stones from a primary producer other than on a retail basis as per the Government Gazette No. 36346 of 5 April 2013.
  • Co-operative Banks
Co-operative Banks regulated by the Co-operative Banks Development Agency in terms of the Co-operative Banks Act, 2007 as per the Government Gazette No. 36346 of 5 April 2013.
  • Estate agents
Any person, who for their own account carries on the business as an estate agent as defined in the Estate Agency Affairs Act, 1976, and who pays to, or receives on behalf of, a third party, any amount in respect of an investment, interest or the rental of property as per the Government Gazette No. 36346 of 5 April 2013.
  • Financial Institutions
Financial Institutions regulated by the executive officer, deputy executive officer or board, as defined in the Financial Services Board Act, 1990, whether in terms of that Act or any other Act (including a ‘financial institution’ as defined in the Financial Services Board act, 1990, other than an institution described in paragraph (a) (i) of the definition) per the Government Gazette No. 36346 of 5 April 2013.
  • Medical Schemes
Any medical scheme registered under section 24(1) of the Medical Schemes Act, 1998 as per the Government Gazette No. 36346 of 5 April 2013.
  • Organs of state
Organs of state, as defined in section 239 of the Constitution of the Republic of South Africa, 1996, that issue bonds or similar financial instruments as per the Government Gazette No. 36346 of 5 April 2013.
  • Postbank
The South African Postbank Limited (Postbank) regulated in terms of the South African Postbank Limited Act, 2010 as per the Government Gazette No. 36346 of 5 April 2013.
  • State-owned companies
State-owned companies, as defined in section 1 of the Companies Act, 2008, that issue bonds, debentures or similar financial instruments as per the Government Gazette No. 36346 of 5 April 2013.

The submission of the information is either done via eFiling, HTTPS or Connect Direct for data submission and the declaration is done via eFiling. The returns are submitted every six  months (1 March to 31 August) by no later than 31 October and full year submission (1 March -29 February) by no later than 31 May.

Kindly contact the C2M office on 021 914 0261 should you need assistance with the submission or have any further enquiries in this regard.

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