PAGSA Newsflash 2022-03 provides an overview of the general changes to tax-related legislation that came into effect on 1 March 2022. The final Amendment Acts include the Taxation Laws Amendment Act, the Tax Administration Laws Amendment Act, and the Rates and Monetary Amounts and Amendment of Revenue Laws Act. These Acts confirm the tax tables, rebates, and threshold changes proposed in the 2021 Budget.

One of the changes to the Employment Tax Incentive Act involves the definition of “monthly remuneration,” while the other change relates to the reduction of the value of the “long services award.” PAGSA is currently in discussions with SARS to resolve the issues surrounding these changes.

The Newsflash also discusses two general employment-related tax amendments. The first amendment clarifies the fringe benefit for employer contributions to a retirement fund, addressing an anomaly that arose when a retirement fund provided both defined contribution component retirement benefits and self-insured risk benefits. The second amendment extends the sunset date of the learnership tax incentive to 1 April 2022 and aims to improve the targeting of the incentive.

Employers should be aware of these changes and ensure that their payroll systems are set up correctly. For more information, visit https://www.pagsa.org.za/2023/06/10/nf-2022-03-final-tax-law-changes-general/.