ASATA has revised the rules and regulations surrounding the awarding of incentives to and from its members.
ASATA wholesaler members may no longer offer direct incentives to consultants and staff of retail members.
Going forward, all incentives must be offered through, and approved by, the management and/or head office of the retail member, to ensure transparency and compliance.
All recipients of incentives are responsible for declaring the value as part of their annual tax returns – incentives constitute remuneration, as defined by SARS.
Wholesaler members can apply for a private ruling from SARS, which would exempt the recipient from the need to declare incentives received.
Should the consultant or staff of a retail member receive an incentive via their employer, tax certificates need to be issued by the employer (retail member) at the end of the year, reflecting the incentive’s total value. The recipient will need to declare this value as part of their tax return.
Wherever possible, incentives should take the form of an educational or familiarisation trip, to support professionalising the industry and to improve the knowledge of the consultant of the retail member.