Kindly assist with understanding the Employment Tax Incentive (ETI) refund process. According to the SARS website, if ETI is not utilised within 6 months it will be refunded to the employers. Will SARS be refunding clients for unutilised ETI? If so, wha
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2020.
Answer:
SARS normally starts the ETI refund process after the closing of the employer filing season (31/10/2020). Employers must ensure that the correct bank details are linked to their PAYE account by completing the bank details on e-Filing and link this to the PAYE account. If the employer is tax compliant, SARS will refund the excessive ETI programmatically when the EMP501 processing is finalised. If the employer is not tax compliant, the non-compliance issues must be corrected before the end of February 2021, in order to receive the refund. If this is not corrected, the refund will be forfeited.