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What is the difference between a Tax Certificate and the Tax Directive?



Sandi says:
23 July 2015 at 15:12

What is the difference between a Tax Certificate and the Tax Directive? I have asked my Funds Administrator from my previous work to provide me with a Tax Directive but they sent me a Tax Certificate. I am getting a message from SARS that my tax return has been put on-hold because there is a Tax Directive that's outstanding. Please assist.

TaxTim TaxTim says:
23 July 2015 at 15:14

Can you please ask the fund if they have submitted the directive to SARS, the difference is that directive state what amount of tax, or none, will be deducted from the payout. A Tax Certificate states the amount of the fund payout and any related tax, similar to a IRP5.

Sandi says:
23 July 2015 at 15:20

I have asked them if this was provided to them by SARS because at some point while I was awaiting my funds someone said they are waiting for a Tax Directive from SARS, so I figured its a document that they can easily forward to me now....but they just sent me a Tax Certificate for the second time.

TaxTim TaxTim says:
23 July 2015 at 20:29

They won't send you a directive, that is sent to the fund and SARS, on your tax certificate will be a directive number however on the bottom right hand corner.

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