Please take note of the below SARS notice.

https://www.sars.gov.za/whats-new-at-sars/

Background:

• ‘Transaction year’ (code 2030)  refers to the tax year during which the employer deducted and paid employees’ tax in respect of remuneration paid or payable to an employee, refer to the SARS PAYE BRS for more information.
• ‘Year of assessment’ (code 3025) refers to the tax year in which the remuneration paid or payable to an employee accrued, refer to the SARS PAYE BRS for more information.
• Example of when the ‘transaction year’ and ‘year of assessment’ may be different:
  The employee is retrenched in February 2020 and is entitled to severance pay in February 2020 which is the 2019/2020 tax year, i.e. the severance pay accrued to the employee in February 2020. The employer only applies for a tax directive in March 2020 and after the tax directive is received from SARS, the payment is made to the employee and the PAYE is withheld/deduced and paid to SARS in March 2021, which is in the 2021/2022 tax year. In this scenario, the ‘transaction year’ will be 2022 and the ‘year of assessment’ will be 2021.