SARS Updates Tax Directives System

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SARS has enhanced the Tax Directives System effective 17 April 2026, with several legislative and operational changes that affect fund administrators, employers, and tax practitioners.

Recognition of Transfer (ROT)

The ROT cancellation process has been streamlined:

• Supporting documents are no longer required when fund administrators or long-term insurers submit a cancellation request on eFiling.

• Cancellations now happen automatically, with no manual review cases created.

• Bulk cancellation functionality has been added, allowing multiple requests to be submitted at once.

• Administrators can now also view the status of cancellation requests and details of ROT reminders sent by SARS.

Double Tax Agreement (DTA) on Form C directives

From 17 April 2026, fund administrators can indicate on the tax directive application that a DTA applies. A manual review case will then be created for SARS to verify. Note: from 17 April 2027, manual email submissions for DTA-related directives will no longer be accepted.

Backdated salaries and pensions

Where a tax directive involves backdated salaries or pensions, employers must now provide a breakdown of the payment into income, benefits, and deductions.

RST01 directive — 3-year validity now reflected

The IRP3er directive for non-resident pension and annuity applications has been enhanced to correctly display the 3-year validity period.

2026 Budget changes now in the system

Two retirement-related thresholds have been updated with effect from 1 March 2026:

• The living annuity commutation value (paragraph (c)) increases from R125,000 to R150,000.

• The de minimis amount a taxpayer can take in full on retirement, without being subject to annuitisation rules, increases from R247,500 to R360,000.

Several updated guides are available:

• IT-AE-33-G01 – Tax directive Cease to be resident and Expiry of visas – External Guide

• IT-AE-41-G01 – Completion Guide for IRP3(a) and IRP3(s) Form – External Guide

• IT-AE-41-G02 – Guide to Complete the Lump sum Tax Directive Application Forms – External Guide

• IT-AE-41-G03 – Guide to Complete Submit and Cancel a Recognition of Transfer – External Guide

• IT-AE-41-G04 – Guide to the Tax Directive functionality on eFiling – External Guide