Independent Software Vendors

What’s new?

• 1 March 2021 – Update on Trade Testing

  The South African Revenue Service (SARS) is in the process of enhancing the Tax Directives process and trade testing for Independent Software Vendor (ISV) submissions. To prepare for the implementation of these enhancements, trade testing will start on 24 March 2021 until 22 April 2021, in line with our intention to go-live within the first quarter of the 2021/22 financial year.

  See more here.

• 1 March 2021 – Legislative Amendments

  On 1 March 2021 several amendments to retirement funds were promulgated and became effective. The amendments are concerning the following:

• Annuitisation of the Provident Fund
• Free Portability of Retirement Funds
• Emigration Withdrawals
• Retirement Annuities
• Commutation of living annuity for terminating Trusts
• ROT [SR1]  Enhancement
• Request for Previously issued Directives for Individuals ad Tax Practitioners

  See more here.

• 2 February 2021 – Update on Trade Testing

  SARS is in the process of enhancing the Tax Directives process and trade testing for Independent Software Vendor (ISV) submissions. To prepare for the implementation of these enhancements, trade testing will start on 22 March 2021 until 22 April 2021, in line with our intention to go-live within the first quarter of the 2021/22 financial year. See more here.

• 11 December 2020 – Trade Testing and Go-live date

  SARS will introduce enhancements to the Tax Directives process as indicated in the IBIR-006 Tax Directives Interface Specification Version 6.103.  The Trade Testing dates will be communicated in January 2021. This is necessary to prepare for the go-live date planned within the first quarter of the 2021/2022 Financial Year.

  You are encouraged to review the Tax Directives Interface Specification prior to testing. 

• 26 October 2020 – Enhancements to the Tax Directive functionality on eFiling

  The tax directive functionality on eFiling has been enhanced to allow individuals and tax practitioners to apply for a tax directive on behalf of their clients. The tax directives applications that individuals and tax practitioners may request on behalf of clients are for:

  • IRP 3(b) – Employee’s tax to be deducted at a fixed percentage (e.g. commission agents / personal service company / personal service trust).
  • IRP 3(c) – Employee’s tax to be deducted at a fixed amount (e.g. Paragraph 11 of the 4th Schedule (hardship) / assessed loss carried forward).
  • IRP 3(f) – Doubtful Debts 11(j)(1)(2) – Only available for tax practitioners.
  • IRP 3(q) – Foreign Tax Credit under paragraph of 10 of the 4th Schedule of Income Tax Act – Only available for tax practitioners.

  See the new Guide to the Tax Directive functionality on eFiling.

What are ISV’s or Interface agents?

The ISV’s software interfaces with SARS for the submission of various returns required by SARS. The ISV service was initiated as an extension of the eFiling service. The software vendors approached SARS to integrate with the eFiling service that would reduce user effort and manage the process of completing tax returns.   The tax types serviced through the ISV service include:

• Annual Returns :
  • ITR12
  • ITR14
  • IRP6
  • ITR12T
• PAYE returns
• Transfer Duty
• Tax Directives (Tax Directive submissions have been allowed for a number of years via an interface that allows for the bulk request of directives)

See the letter on the ISV Tax Directives file submission migration to the new SFTP solution.

How does it work?

Secure access is enabled by a unique access key for the specific product and application. After user authentication is done, the interface interaction is allowed. The user is required to be an active user on eFiling with the appropriate rights.   Currently we have three categories of ISV’s:

• Tax Returns Submissions
• Transfer Duty
• Directive Requests

Need Help?

You may forward the signed Terms and Conditions on email to clsisvapplications@sars.gov.za. It applies only to ISV’s requested authorisation for their systems to interface with SARS Systems.

For Tax Directives applications the existing process will continue whereby the interface specification and External Application for Access to SARS – Electronic Interface under “Form INF001” to register for access to SARS Interface are available in the Interface Specification IBIR-006 Tax Directives. Please note that the Terms and Conditions are also applicable to Tax Directive applications.