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About Us

To add to our national revenue, National Treasury revises tax legislation regularly. SARS subsequently prescribes the necessary changes in terms of tax reporting requirements and communicates this to the impacted industries, placing a tremendous burden on companies to modify their internal systems to ensure compliance. Failure to do so always poses the risk of attracting SARS penalties for non-compliance and reputational risk for the company.

ebTax (Employee Benefits Tax) provides an efficient, easy-to-use cloud-based solution to function as a one-stop tax compliance facilitation partner to its clients.

Our Services

ebTax offers a Software as a Service (SaaS) solution that allows for the electronic submission of data to SARS through seamless, secure integration.

Applications for Tax Directives
Applications for tax Directives
  • All tax directive applications comply with the requirements as prescribed by SARS to ensure the successful generation of tax directives (IRP3E's) and their related IRP5/IT3(a) certificates.
  • Validations run in real-time.
  • Direct integration or Bulk Upload functionality accommodates for large quantities of applications.
  • Directive applications supported are:
    • Form AD: The prescribed SARS application form for Retirement Lump Sum Benefits per par. 2(1)(a) and 2(1)(c) of the Second Schedule to the Income Tax Act accruing from Pension, Pension Preservation, Provident and Provident Preservation Funds.
    • Form AD caters for:
      • Retirement- or death-related events.
      • The transfer of a pension fund or provident fund benefit to a retirement annuity fund, pension preservation or provident preservation fund on or after reaching the allowed retirement age, as defined in the rules of the fund, but before the retirement date.
    • Form B: The prescribed SARS application form for Retirement Lump Sum Benefits per par. 2(1)(a) and 2(1)(c) of the Second Schedule to the Income Tax Act accruing from Pension, Pension Preservation, Provident and Provident Preservation Funds.
    • Form B caters for:
      • The transfer of benefits between funds (including Section 14 transfers of the Pension Funds Act).
      • Divorce decrees accruing to member spouses and non-member spouses.
      • Unclaimed benefit transfers to unclaimed benefit preservation funds.
      • Benefits accruing from pension and provident funds upon retrenchment.
      • The accrual of benefits upon the resignation of a member from employment.
    • Form C: The prescribed SARS application form for post-retirement lump sum benefits accruing in terms of paragraphs 3 and 3A of the Second Schedule to the Income Tax Act from a Retirement Annuity Fund.
    • Form C caters for:
      • Retirement- or death-related events.
      • Transfers of benefits to another approved Retirement Annuity Fund.
      • Divorce decrees accruing to member spouses and non-member spouses.
      • “Paid-up” Retirement Annuity Fund contributions.
    • Form E: The prescribed SARS application form for post-retirement lump sum benefits accruing in terms of paragraphs 3 and 3A of the Second Schedule to the Income Tax Act from Pension, Pension Preservation, Provident and Provident Preservation and Retirement Annuity Fund.
    • Form E caters for:
      • Lump-sum benefits accruing to beneficiaries upon the death of a member or former member.
      • Lump-sum benefits accruing to beneficiaries upon the death of a beneficiary.
      • The commutation of a lump-sum benefit by the beneficiary.
      • “General Note 16” commutations.
      • Commutations of benefits in terms of par. (c) of the definition of “Living Annuity”.
    • IRP3(a): The prescribed SARS application form for an employer-employee-related lump sum payments.
    • IRP3(a) caters for:
      • Severance benefits upon death, retirement or retrenchment of an employee.
      • Occupational injury lump sums.
      • Taxable and non-taxable employee-owned policy proceeds.
      • Other miscellaneous lump-sums due to an employee.
    • IRP3(s): The prescribed SARS application form for revenue gains under sections 8A or 8C of the Income Tax Act.
    • IRP3(s) caters for:
      • Revenue gain in respect of rights to acquire marketable securities in terms of Section 8A.
      • Revenue gain in respect of the vesting of equity instruments in terms of Section 8C.
      • Amounts in terms of par (dd) of the proviso to section 10(1)(k)(i) dividends.
      • Amounts in terms of par (ii) of the proviso to section 10(1)(k)(i) dividends.
      • Amounts in terms of par (jj) of the proviso to section 10(1)(k)(i) dividends.
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IT88L
IT88L (Stop Order)
  • Where the member/employee has debts with SARS an IT88L will be issued along with a tax directive application. This include:
    • Outstanding taxes on an assessment.
    • Provisional tax.
    • Administrative penalties.
  • ebTax, as an appointed SARS agent, is obligated to forward an IT88L issued with a tax directive to the fund administrator/employer, who in turn effectively becomes a “third party appointment” in terms of section 179(1) of the Tax Administration Act. 2011.
  • The fund administrator/employer must act on the IT88L and deduct any outstanding debt from the member/employee’s lump sum benefit and pay it over to SARS along with (if) any tax liabilities on the lump sum benefit.
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Simulated Tax Directive Application
Simulated Tax Directive Application
  • SARS has introduced the ability to simulate the outcome of a tax directive application. This simulation is an estimated tax liability calculated by SARS on a lump sum benefit and indicates any debt that the member/employee may have with SARS.
SARS Compliant Tax Certificates
SARS Compliant Tax Certificates
  • SARS requires that tax certificates be issued and submitted to SARS in terms of the Income Tax Act and Tax Administration Act, respectively.
    • IRP5: The IRP5 is an employee's tax certificate that is issued to him/her by his/her employer at the end of each tax year detailing all employer/employee related incomes, deductions and related taxes. It is used by an employee specifically to complete his/her income tax return for a specific tax year.
    • IT3(a): The IT3(a) is an employee's tax certificate that is issued to him/her by his/her employer at the end of each tax year detailing all employer/employee related incomes. An IT3(a) certificate report on non-taxable earnings of employees.
    • IT3(b): The IT3(b) is a tax certificate issued to an employee/fund member in respect of interest on loans and mortgage bonds, fund investments, debentures or savings. The IT3(b) includes Withholding Tax on Interest (WTI) where applicable.
    • IT3(c): The IT3(c) is a certificate issued to a taxpayer by a banking or financial services institution related to any income paid or accrued on the disposal of assets, e.g. any proceeds from the sale of unit trusts.
    • IT3(f) Insurance: The IT3(f) Insurance is a tax certificate issued by a financial institution such as a long-term insurance company to a member. It reflects the total current retirement annuity contributions made by the member for the current tax year as well as the total income protection contributions for the tax year.
    • IT3(f) Medical: The IT3(f) Medical is a tax certificate issued by a medical scheme to its principal members to report on member and other demographics, contributions made by employers and employees towards a medical scheme as well as benefits not covered, interest and refunds.
    • IT3(s): The IT3(s) is a certificate issued to a taxpayer by a banking or financial services institution containing information related to a Tax-Free Savings account.
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Electronic Recognition of Transfer (ROT)
Electronic Recognition of Transfer (ROT)
  • In terms of the Tax Administration Act, SARS requires a Recognition of Transfer (ROT) application where there is a movement of benefits between funds or insurers.
  • Electronic ROT’s are manually or automatically generated based on a tax directive application where a transfer / General Note 18 purchase is detected.
  • Functionality allows for the initiator fund to attach supporting documentation to the ROT application to avoid rejections by the receiving fund.
  • The recipient fund administrator is not required to be an ebTax client.
  • All parties (initiator fund, recipient fund and broker) are kept up-to-date during the processing of an electronic ROT.
    • ROT01: The “ROT01” (Recognition Of Transfer) application is issued when a lump-sum benefit transfer to another approved fund before retirement.
    • ROT02: The “ROT02” (Recognition Of Transfer – Purchase) certificate issued for a “General Note 18” purchase of a member/beneficiary owned pension/annuity from an insurer.
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SARS Compliant Reporting
SARS COMPLIANCE AND REPORTING
  • EMP201: Employers are required to declare the total payment and tax paid to SARS monthly via the EMP201 submission form.
    • ebTax provides a customizable monthly report to our clients for them to complete their EMP201 returns on a per fund, per PAYE basis, or both.
  • EMP501: Legislation requires employers to submit a declaration of taxes deducted from employees and paid to SARS during a tax year. This declaration must reconcile with the income and taxes paid to SARS as reflected on the employee’s IRP5 or IT3(a).
  • IT3 Data Submissions: SARS requires bi-annual and annual submissions of third party data on income other than from employment or retirement benefits.
    • IT3(b) certificates report interest income from investments, rental income, dividends, royalties and other income that was due, paid or accrued to account holders and withholding tax on interest.
    • IT3(c) certificates report payments like proceeds from the sale of unit trusts and other financial instruments.
    • IT3(f) Insurance certificates report on all Retirement Annuity contributions made by the member, for the year of assessment.
    • IT3(f) Medical certificates report on all medical contributions made by the member for the year of assessment including all expenses not covered by the medical aid and the number of dependants.
    • IT3(s) certificates report on the Tax-Free Savings/Investments.
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SARS Compliant Reporting
PrePAYE Certificates for Annuity Transactions
  • ebTax caters for the creation of prePAYE certificate applications, per annuitant, period and source code for one or more annuity transactions.
  • The end goal of the prePAYE service is to allow the client to generate a PAYE certificate from annuity transactions for SARS Interim and Final Submissions.
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SARS Compliant Reporting
Web Service Functionality
  • ebTax caters for direct integration into our client's systems via web services.
  • ebTax has a fully-fledged API, described using WSDL (Web Service Description Language).
  • Client applications (web service consumers) interact with ebTax through web service method calls. Access control performs identification, authentication and authorisation mechanisms complemented by Microsoft’s Windows Communication Foundation (WCF).
  • The ebTax system is built with established standards, implementing WCF services technology and XML using the SOAP protocol.
  • ebTax also has a complete set of Objects (Microsoft .NET version 4.5.1) that can be used to generate the required XML before using to the web service.
  • All web service calls make use of HTTP SOAP bindings over SSL.
  • ebTax web services cater for the processing of:
    • All types of tax directive applications.
    • PAYE-, IT3 certificates and monthly annuity certificates.
    • Recognition of Transfer: ROT01 (Transfer) and ROT02 (Purchase).
    • Cancellations of directives and certificates.
    • Document extraction in brandable PDFs for directives, ROTs and certificates.

Why ebTax

ebTax keeps abreast of the relevant legislative and SARS requirements for system changes at all times, which alleviates the burden on our clients to do the same and allows them to concentrate on their core business needs.

Subsequently, this accommodates for the reallocation of valuable resources.

The ebTax team keeps close ties with SARS resulting in quick solutions to any issues or queries our clients might experience. By directly integrating with ebTax an autonomous process can be accomplished with little human intervention, mitigating the risk of errors, incomplete or missing data for reporting purposes.

ebTax has been in the retirement fund industry since 1999 and has a proven track record.

The ebTax solution is modular, allowing our clients to customize the ebTax solution to cater to their specific needs.

Our Pricing

The first question for any business is naturally “How much do I pay for what I get?”.

In short, ebTax customizes a modelled pricing solution based on our clients’ needs, and if it necessitates, a “try before you buy” trial period.

Our Support

It is an accepted fact in the retirement fund industry that legislation related to lump sum and lump sum benefit tax is, at best, quite difficult to fathom. In this regard, ebTax endeavours to keep our system and supportive advice up to date and in line with any proposed and implemented legislation.

Multiple redundant data connections, allowing for always-on connectivity.

Redundant, highly available hardware, ensuring that products are never down.

Backup power.

 

Physical and electronic security to ensure the safety of the data.

Proactive backups.

Disaster recovery procedures.

 

Environmental control and monitoring.

A professional and highly competent support service.

Constant and proactive education and training.

 

A qualified and supplementary staffing compliment, ensuring that no single staff member is indispensable.

A proper understanding of best practices by the support staff.

Our Clients

Alexander Forbes
Allan Gray
Discovery
Liberty
Momentum
Old Mutual
PSG Wealth

Contact Us

Please don't hesitate to contact us if you require any further information on ebTax

Phone: 012 000 4980
support@ebtax.co.za
29 Victoria Link
Route 21 Corporate Park
Irene, Centurion, 0157

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