LEGISLATION
WDS Investments cc / Trading as BlackJack Events is a Registered Labour Broker, Labour Broker Number: 7016346/00/4, Income Tax Reference Number: 9903/517/14/3 Employees Tax Reference Number: 7790/753/19/0
WDS Investments cc / Trading as BlackJack Events is in possession of a valid IRP 30, Exemption Certificate in Respect of Employees Tax, Serial Number: 0216544.
The Following Information is available on The South African Receiver of Revenue Website, www.sars.co.za or in the South African Receiver of Revenues Guidelines for Employers Handbook, EMP 10 – Volume 46, pages 66 – 70
Labour Brokers and Independent Contractors
47. Labour Broker
For employees’ tax purposes a labour broker is a person who, for reward, provides a client with other persons) or procures the persons) to render a service or to perform work for a client. Typically, a labour broker either makes available his own employees to perform work for a client or he obtains workers for a client.
The provision or procurement of workers as opposed to the provision of service is of importance. Typically, a labour broker arrangement will involve three parties, namely;
The client (to or for whom workers are provided or procured).
The labour Broker (who provides or procures workers for the client).
The worker (who is provided or procured by the labour broker to or for the client).
Remuneration paid to a labour broker without a valid exemption certificate (IRP 30) is subject to employees’ tax and the remuneration paid must be reflected under code 3617 on the IRP 5 certifica
Remuneration paid to a labour broker who is in possession of a valid exemption certificate (IRP 30) is not subject to employees’ tax and the remuneration paid must be reflected under code 3617 on an IT 3(a) certificate with reason code for non-deduction of employees’ tax as 07.
Client: A person who specifies the workers he needs. A written or oral service contract would arise between the client and the labour broker where the service conditions of the workers may or may not be stipulated. Payments for the workers’ services are made to the labour broker.
Labour Broker: The labour broker is a person who, for reward, provides and remunerates workers for a client and is either in or not in possession of an exemption certificate (IRP 30). The labour broker either makes available his own employees to perform work for a client or he procures workers for a client. The labour broker pays the workers.
Workers: These workers can be any person.
48. Exemption Certificate (IRP 30)
Provision has been made for the issue of an exemption certificate to a labour broker, and will absolve employers from having to deduct employees’ tax from any payments made to such persons.
49. Rates of Tax Applicable to Labour Broker
If a labour broker is not in possession of an exemption certificate, all payments made to the labour broker will be subject to employees’ tax:
The deduction is classified in the following categories:
Individuals: Employees’ tax must be deducted according to the employees’ tax deduction tables.
Company of Close Corporation: Where the labour broker is a company or close corporation, tax must be deducted according to the rate applicable to “employment comTax Directive: Tax must be deducted according to the instructions on the tax directive.
Should there be any Questions or Queries with regards to Exemption Certificates (IRP 30) or Labour Brokerage please do not hesitate to contact us!
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