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Your Individual Tax Reference number

The individual Tax reference number is essential,  for a number of reasons:

  1. Your Tax reference number must appear on your IRP5 or IT3a at the end of the Tax year.
  2. When your employer submits half yearly information for payroll taxes, SARS checks that each employee is a valid citizen.
  3. UIF can be only paid out only to persons who are paying these monthly amounts once they retire or are retrenched.
  4. Lastly all citizens require a tax reference number. It does not matter if you earn below the threshold. No individual can opt out of being registered from the collection of taxes from SARS.
  5. Pension, RA and Unit Trust payouts will require a tax reference number should you receive a payment or withdraw from the fund.

Ultimately, SARS has to identify each citizen who is employed. Thus, employers are bound by the law to not employ persons until the applicant has provided a valid Tax Reference number.

The Employer will be penalised should they submit information for persons who are not registered. Collection of taxes into the SARS treasury, namely for PAYE is a very important source of income, and SARS makes it a priority to ensure that the employers paying these over are doing so correctly and on on time.

Penalties charged on late payments of PAYE are charged at 10%. These charges amount to severe fines if not corrected by the employers.

Furthermore, what your employer does not tell you is that they are able to register you with SARS for a Tax Reference number. 

When loading an individual as a new taxpayer, the employer must ensure that the correct information is captured for postal address, street address, banking details, email and contact numbers. This information is essential for when the employee wishes to query their tax status or when creating their own personal E-Filing profile for the first time.

So if you find yourself in need of a Tax reference number, ensure that you have the following documents when visiting your nearest SARS office:

  • Valid Identity document and Original Certified copy
  • Certified Bank Statement or Original (not older than 3 months)
  • Proof of address: Municipal Bill or Creditors Account  (not older than 3 months) or CRM01 form should you not have a proof of address in your own name.

Being armed with this knowledge, will ensure a that your experience of obtaining a Tax reference number is carried out as efficiently as possible.