With effect from 1 March 2002 payments made to directors of private companies (including members of close corporations) in respect of services rendered are subject to PAYE. Companies and close corporations will, therefore, be liable to make PAYE payments to the South African Revenue Service in respect of these payments.
Information in this regard is available on pages 21 to 24 of the Explanatory Memorandum on the Revenue Laws Amendment Bill of 2001, which can be found on the SARS website at the following link:
http://www.sars.gov.za/ho/bills_acts/Revenue_Laws_Amendment%20Bill_2001_memo.pdf
More information will be made available on the SARS website and by way of a direct communication to employers by the middle of February 2002.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA