Description

This directive is submitted when a request is made that a fixed rate be deducted from a taxpayer's remuneration. Note that the employer has to submit this request on behalf of the employee.

Directives are not transferable and whenever the employee has changed his or her employment position, a new application must be made. If you have more than one employer, a separate application for a directive must be made in respect of each employer.

Copies of letters of employment, service contracts and other relevant documents are required for verification of the terms and conditions of employment.

A fixed percentage directive will be issued for a maximum of 12 months and must be renewed thereafter.

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Steps to follow

• Make sure your tax affairs are in order when applying for a tax directive. SARS will not normally issue a tax directive if you have any outstanding tax returns or tax payments.
• On your application form for a tax directive, supply the following:
• • your ID and tax reference number
  • your employer’s PAYE reference number.
• Attach the following documents to your application:
• • a copy of a service contract (wherein details of commission and conditions are highlighted)
  • a letter of justification if you ID number or PAYE reference number is not available.
• Submit your application for a fixed percentage directive manually at the SARS branch office, as the employee has to attach a detailed income and expenditure statement.

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Legal framework

Income Tax Act, 1962 (Act 58 of 1962)

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Service standard

Once approved by SARS, confirmation will be supplied within few days. However, the official tax directive could take up to four weeks.

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Cost

The service is free.

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Forms to complete

(Forms are provided in PDF format. To open PDF documents, you need to have Adobe Acrobat Reader 4 or higher installed on your computer.)

Application for a tax directive - fixed percentage, IRP 3b

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Contact details