Are still a labour broker for tax purposes?
Tax Bulletin | 9 April, 2009 | Hot Topics:
Don’t panic if you haven’t got your IRP 30 certificate!
SARS has amended the definition of “labour broker” so that only individuals can be labour brokers.
If you’re an individual labour broker (not a company or cc) – the previous rules still apply to you.
But, from 1 March 2009, if you’re a labour broker and run your business as a cc or company, the rules applying to labour brokers won’t apply to you and this means your clients won’t need to withhold PAYE from fees they pay to you (unless you fall within the definition of a “personal service provider”)!
What does this mean for you, if you’re a labour broker company or cc?
If you’re a labour broker company or cc, SARS won’t issue you with a labour broker exemption certificate (the IRP 30 certificate) for next year. But don’t worry, this doesn’t mean your clients will have to withhold PAYE.
Your clients will only be allowed to withhold PAYE if you fall within the definition of a “personal service provider.”
Until next week.
Regards
Nothando Hlatshwayo
Managing Editor
The Practical Tax Handbook
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Editors note
Fulvia Stoltz
Tax Bulletin Editor
The Tax Bulletin is packed full of tax tips, commentary on changes to the tax landscape and is also an interactive tax forum which aims to help you efficiently manage your taxes and avoid all the traps. It is also a handy reminder of the deadlines which taxpayers have to meet.