Vatco Consulting Services
Apply for a Tax Directive with Confidence – Vatco Handles It for You
We help individuals and businesses apply for SARS tax directives to ensure accurate tax deductions and avoid overpaying on lump sum or irregular income.
Providing Quality Services
with Experienced Consultants
1. Schedule A Consultation
Visit our website and schedule a consultation with one of our experienced accountants.
2. Discuss Your Financial Goals
Our team will sit down with you to discuss your financial needs and goals, and develop a customized plan to achieve them.
3. Watch Your Business Thrive
We’ll work with you to implement the plan and ensure that your business is thriving financially.
Contact us at the Vatco nearest to you or submit a business inquiry below.
- VAT Registration
- Tax Clearance Certificate
- PAYE Registration
- Income Tax Registration
- Tax Compliance Status Pin
- Customs Code Registration
- Provisional Tax Returns (IRP6)
- Personal Income Tax Returns
- Business Income Tax Returns
- Tax Directives Application
- EMP201 & EMP501 Submissions
- Tax Debt Negotiation & Payment Arrangements
- Public Officer Activation
- Trust Income Tax Registration
- PBO Registration
- Bonded Cargo Registration
- Remover of Goods in Bond
What Is a Tax Directive?
A Tax Directive is an official instruction from SARS to an employer, fund, or payer that tells them how much tax to deduct from a specific payment. This applies to lump sum payments like pension/provident fund withdrawals, retirement annuities, commissions, and severance packages. Without a directive, these payments may be taxed at the maximum rate.
Vatco helps you apply for a tax directive quickly and correctly, reducing the risk of over-deduction and ensuring that your tax treatment is fair and compliant.
Why Do You Need a Tax Directive?
Accurate Tax Deductions: Avoid being taxed at a higher rate than necessary.
Protect Lump Sum Payouts: Ensure retirement, severance, or investment withdrawals are taxed fairly.
Required for Certain Income Types: Fund administrators and employers must withhold tax based on an approved directive.
Prevent Delays: SARS may delay payments if no directive is submitted.
What’s Included in Our Tax Directive Application Service?
✅ Review of your financial situation and payment type
✅ Identification of the correct directive category
✅ Application submission through SARS eFiling
✅ Liaison with SARS for updates or queries
✅ Delivery of the approved directive to your employer or fund
Who Should Apply for a Tax Directive?
Individuals withdrawing from pension or provident funds
Retirees accessing retirement annuities or living annuities
Employees receiving commissions, bonuses, or severance packages
Freelancers or consultants with fluctuating income
Estates making final tax settlements
Step-by-Step: How Vatco Assists
Directive Type Check: We determine the appropriate directive code based on your situation.
Document Gathering: We help you collect payslips, tax history, ID, and fund statements.
Application Submission: We submit the directive request via SARS eFiling.
SARS Follow-Up: We handle queries or document requests to prevent delays.
Directive Issued: We send the approved directive to the employer, fund, or administrator.
What Documents Are Needed?
Certified copy of your ID
Latest payslip or tax calculation
Tax number
Letter from employer or fund (explaining the payment)
Supporting statements for fund withdrawals or lump sums
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Frequently Asked Questions
FAQs: Tax Directives Application
1. What is the purpose of a tax directive?
It ensures SARS-approved tax is deducted correctly from lump sum or special income payments.
2. When do I need a tax directive?
Any time you’re receiving a lump sum payment (e.g., retirement, severance, bonus) outside regular salary.
3. Can I apply for a directive myself?
Yes, but mistakes or missing documents may delay approval. Vatco ensures correct submission.
4. How long does it take to get a directive?
Typically 5–10 working days, depending on SARS workload and documentation.
5. Is a tax directive only for retirees?
No. It also applies to bonuses, commissions, payouts, freelancers, and final estate settlements.
6. Will I be overtaxed without a directive?
Yes. Without a directive, SARS may instruct the payer to deduct at the highest marginal rate.
7. Does Vatco submit the directive to SARS?
Yes. We handle the application, monitor its progress, and ensure delivery.
8. What happens if my directive is rejected?
We assist with correcting issues, resubmitting, and ensuring approval.
