Personal Service Provider Psp, While this may provide some relief in respect of the labour laws employers may still have SARS obligations to these service providers more commonly known as a personal service provider or “PSP". You do not have to use a registered agent. 17 (Issue 3) “Employees’ Tax: Independent Contractors” focuses on some of the more pertinent issues relating to independent contractors. A PSP has been included in the definition of The facts deposed to herein fall within my personal knowledge and are to the best of my knowledge and belief, true and correct. Aug 11, 2025 · A Personal Service Corporation (PSC) is a special type of C-corporation where the owners are actively engaged in providing professional services. A Personal Service Company is one which provides services such as consulting, bookkeeping, designing etc which are actually services provided by a person rather than product supplied or non personal services, such as rental property. I specifically Further Notes Labour brokers and personal service providers Personal service provider Any company, close corporation or trust that fits the definition of a personal service provider and which is in receipt of remuneration as defined in the Fourth Schedule is subject to the deduction of employees tax. I have considered the status of the Brokerage and confirm that it does not comprise a personal service provider as defined in the Income Tax Act 58 of 1962 for the current year of assessment. 2. Sep 20, 2023 · If you are a business in South Africa falling into the personal service provider classification, you will not qualify for small business tax rates unless you meet these criteria. Apr 9, 2013 · A Personal Service Provider refers to a company which offers particular services and in reality it is the person providing the services who represents the company. Not so. They may also provide other administrative services to your business. One of three additional requirements must be met for an entity to be a PSP: Interpretation Note No. . Nov 22, 2018 · With South Africa’s strict labour laws many employers are choosing to outsource work to contractors rather than employing people on a full-time basis. 5. A complete suite of data exchange services Compliance Enables financial product providers to, throughout the business process, verify that an FSP and its Representatives are licensed and authorised in line with FAIS Section 7 (3) requirements and to determine the Personal Service Provider (PSP) and B-BBEE status of an FSP. Oct 26, 2023 · Both personal service providers and labour brokers without a certificate of exemption may claim amounts paid to employees for services rendered, which amounts are taken into account in the determination of the taxable income of the employee. INTRODUCTION Personal Service Provider (hereafter "PSP") is any person with whom the resident (or someone on the resident's behalf) contracts to provide health-related or personal care services to the resident. The whole point of the PSP legislation is to have the same tax consequences you would have had as an employee: Payments by the client (employer) to the company are subject to PAYE withholding at 27%. 3 This Interpretation Note focuses on the so-called “incorporated” entities, and the introduction of the terms “personal service company” and “personal service trust” into the Fourth Schedule to the Act (the Fourth Schedule) with effect from 1 April 2000, the tightening of the requirements for granting an exemption certificate to PERSONAL SERVICE PROVIDERS (PSP) QUESTIONNAIRE For the Intermediary and/or Service Provider 1 Is the Intermediary/Service Provider a sole proprietorship or partnership? Yes No (If YES, the Intermediary/Service Provider CANNOT be a PSP, no further questions need to be answered in this section. Feb 4, 2020 · First things first In general, the typical personal service provider (henceforth referred to as “PSP”) as defined in the Fourth Schedule of the Income Tax Act 58 of 1962, is prohibited from qualifying as a small business company (hereafter referred to as “SBC”) in terms of section 12E (4) (a) (iv) of the Income Tax Act. In order for it to be classified as a Personal Service Company a number of tests are applied. One of three additional requirements must be met for an entity to be a PSP: Oct 26, 2023 · Both personal service providers and labour brokers without a certificate of exemption may claim amounts paid to employees for services rendered, which amounts are taken into account in the determination of the taxable income of the employee. ) I am the duly authorised representative of INSERT (Registration number INSERT), (income tax registration number INSERT) ("the Service Provider"), which provides a personal service to Old Mutual Insure Limited in terms of the Intermediary Agreement concluded between the Parties. Apr 15, 2025 · A Personal Service Provider (PSP) is a type of company or entity that provides services to clients, where the nature of the services is primarily based on the skills and labor of the individual providing them. If you do, you can choose to use them for some or all of your lodgement obligations. 4. Registered agents must be registered with ASIC. This Note focuses on the so-called interposed entities. Jan 1, 2019 · In this article we examine the concept of personal service provider (PSP) and what the tax implications are. This means that the services of the company/trust are personally rendered by any person regarded as being connected to the PSP. Mar 30, 2022 · A Personal Service Provider (PSP) refers to a company that offers particular services and in reality, it is the person providing the services who represent the company. Mar 28, 2018 · A PSP can be a company, close corporation or trust, where any service rendered on behalf of the entity to its client (the would-be employer) is rendered personally by any person who stands in a connected person relationship to such entity. According to a 2023 IRS report, over 70% of small professional firms avoid traditional C-corp status, highlighting how rare and risky PSC classification can be for unwary business owners. Mar 30, 2022 · A Personal Service Provider (PSP) refers to a company that offers particular services and in reality, it is the person providing the services who represent the company. These corporations face unique tax […] Aug 5, 2025 · In this article we examine the employees’ tax (PAYE) risks and reporting obligations for a person or entity when engaging with a personal service provider (PSP). Nov 22, 2022 · A personal service provider is a company or trust whereby the owner of a business renders a service in their personal capacity using the company/trust as a channel. PERSONAL SERVICE PROVIDERS (PSP) QUESTIONNAIRE For the Intermediary and/or Service Provider 1 Is the Intermediary/Service Provider a sole proprietorship or partnership? Yes No (If YES, the Intermediary/Service Provider CANNOT be a PSP, no further questions need to be answered in this section. Recent amendments introduced the concept of “personal service provider” to replace the definitions of “personal service company” and “personal service trust For example, they can lodge documents with ASIC, and receive notifications on behalf of your company. 3 This Interpretation Note focuses on the so-called “incorporated” entities, and the introduction of the terms “personal service company” and “personal service trust” into the Fourth Schedule to the Act (the Fourth Schedule) with effect from 1 April 2000, the tightening of the requirements for granting an exemption certificate to Mar 28, 2018 · A PSP can be a company, close corporation or trust, where any service rendered on behalf of the entity to its client (the would-be employer) is rendered personally by any person who stands in a connected person relationship to such entity. We are an accounting firm in the South Africa providing accounting, payroll, secretarial, auditing and taxation services to businesses throughout South Africa. I am the duly authorised representative of INSERT (Registration number INSERT), (income tax registration number INSERT) ("the Service Provider"), which provides a personal service to Old Mutual Insure Limited in terms of the Intermediary Agreement concluded between the Parties. ) Mar 20, 2012 · Editor’s thoughts: The Personal Services Provider (PSP) directive was the tax authority’s response to employees who resigned from their jobs and then masqueraded as contractors to side-step their PAYE obligations… But – like many regulatory interventions – the strict definition snares many genuine small businesses and commission earners. 1 Personal service provider Any company, close corporation or trust that meets the definition of “personal service provider” and is in receipt of “remuneration” as defined in paragraph 1 is subject to the deduction or withholding of employees’ tax. agvqoz, s1wt, o5ce, oz4x, iyduu6, bbpcjm, hufrj, e98sk, h5le, jljwr,