Do you need to supply an IRP5 for freelance workers?

By Marc Sevitz · Updated 5 September 2013

If we have a freelance guide that worked for us for a number of days in the year and they get an agreed payment from us (example of R 650 per day) and we do not deduct tax for this. Do we need to supply them with an IRP5? Take note that this person is not an employee of this company.

TaxTim Marc said:
5 September 2013 at 21:32

How many days did they work and how much did they earn in total? In theory you do need to withhold 25% and pay that over to SARS and issue an IRP5, however if you have not then you should be invoiced for this and the freelancer would need to declare this as their income on their personal return.

Winnie said:
6 September 2013 at 9:57

Thank you for coming back to me.

He worked a total of 7 days and we paid him R 4,550 for his services (R 650 per day). We did not deduct any VAT off this.

TaxTim Marc said:
8 September 2013 at 23:44

If he invoices you for this once off job then you should be alright in not having deducted PAYE from his amount.

Salary / IRP5

Independent Contractor

Deductions

Commission

Audit / Verification