To cancel a IRP5 registration for employees’ tax you can:
- Indicate on the final EMP501 reconciliation that you want to deregister for employees’ tax and provide the reason for deregistration;
- Use the deregistration function on eFiling;
- Send a written notification and EMP123/EMP123T form to SARS. You can send the notification and form via email, post or fax to the region where the entity is registered.
To cancel the registration of all businesses you need to submit the EMP123 Form.
To cancel a separately registered branch or division you need to submit the EMP123T Form.
What is Reconciliation?
It involves an employer submitting an accurate Employer Reconciliation Declaration (EMP501), Employee Tax Certificates [IRP5/IT3(a)s] to be issued and if applicable, a Tax Certificate Cancellation Declaration (EMP601).
The three elements that must reconcile for your submission to be successful are the:
- Monthly Employer Declarations (EMP201s) submitted [Pay-As-You-Earn (PAYE) and/or Skills Development Levy (SDL), Unemployment Insurance Contributions (UIC) amounts due and Employment Tax Incentive (ETI), if applicable]
- Payments made (excluding penalty and interest payments)
- IRP5/IT3(a)s generated – PAYE, SDL and UIC values.
Who is it for?
Employers need to submit their reconciliation by the date published in the Government Gazette.
When and how should submissions be made?
Reconciliation declarations should be submitted twice during year of assessment, for the:
- Interim period – which is for the six month period 1 March to 31 August
- Annual period – which if for the full year 1 March to 28/29 February.
The Business Requirement Specification (BRS) defines the data submission requirements for the tax certificates [IRP5/IT3(a)s], and the reconciliation for PAYE, SDL, UIC and/or ETI, if applicable.