Tax Directives 101

What is the purpose of a tax directive?

The purpose of a tax directive is to enable SARS to instruct an Employer, Fund Administrator or Insurer how to deduct employees’ tax from certain payments to a taxpayer or for a fixed tax rate for an individual who earns commission income.

Employers, Fund Administrators and Insurers can request a tax directive from SARS via the following channels:

  • At a SARS branch – complete the correct form from the list below and submit it at your nearest SARS branch with the relevant supporting documents.
  • eFiling – Employers and Fund Administrators who have an organisation profile can log in and request a directive online.
  • Register as an Interface agent. (Refer to the Tax Directive Interface specification (IBIR006))

• Use the email address on SARS website

Tax calculations according to the tax directive should be regarded merely as an estimate according to the information on SARS tax directive system. Some employees may find that they still have to pay in substantial amounts or that a credit may be due to them once the final liability has been determined on assessment.

Application forms are available for specific tax directive types. Form A&D, Form B, Form C and Form E serve as examples of the form layout.

The Employer / Fund Administrator / Insurer must ensure that the correct application form is used according to the reason for the exit from the fund / employer’s service and the nature of the amount payable to the employee / member of the fund.