Four accounting records the Tax Admin Act and Income Tax Act require you to keep
43984, 26 Aug. 2014
Tags: accounting records, taa, ita, tax admin act, income tax act
Are you one of those business owners who think keeping accounting records isn’t necessary?
If so, you’re wrong.
The Tax Admin Act (TAA) and Income Tax Act (ITA) require you to keep four important accounting records.
If you don’t comply, you’ll face serious penalties.
Don’t take that risk.
Read on to discover the four accounting records you must keep in terms of the TAA and ITA.
Keep these four accounting records, says the Tax Admin Act and Income Tax Act
The TAA and ITA are both very clear that you must keep these four records for five years from the date you submit your return:
Accounting record: #1: Remuneration paid to employees.
Accounting record #2: Tax deducted from employees’ gross remuneration.
Accounting record #3: The Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF) contributions you made for each employee.
SDL is a levy you, as an employer, pay to develop learning in South Africa. You pay 1% of your employee’s salary per month as SDL.
UIF, on the other hand, is a fund that employees have the right to claim from if they become unemployed. It only applies to permanent employees and excludes:
- Employees who work less than 24-hours per month per employer;
- Foreign workers on a contract in South Africa; or
- Workers who only earn commission.
Accounting record #4: Income tax numbers of each employee.
You need to ensure your records include:
- Personal details of your employees; and
- Financial details of each employee (i.e. banking details).
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