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  • Employees Tax Summary

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    Given Refilwe
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    Employees tax is calculated as follows: 1) Remuneration includes income but excludes certain allowances, government pensions, and fully reimbursed expenses. 2) Allowable deductions include employee pension and RAF contributions (limited), income protection insurance (option of employee or employer), and medical scheme contributions (option of employer for those over 65). 3) Tax is calculated on the balance of remuneration (BOR) and annual equivalent amount. 4) Rebates are subtracted to determine the employee tax liability which is divided by 12 to calculate the monthly tax amount. 5) Annual payments are added to the annual equivalent amount and taxed, with the difference being the tax on the bonus

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    Employees tax is calculated as follows: 1) Remuneration includes income but excludes certain allowances, government pensions, and fully reimbursed expenses. 2) Allowable deductions include employee pension and RAF contributions (limited), income protection insurance (option of employee or employer), and medical scheme contributions (option of employer for those over 65). 3) Tax is calculated on the balance of remuneration (BOR) and annual equivalent amount. 4) Rebates are subtracted to determine the employee tax liability which is divided by 12 to calculate the monthly tax amount. 5) Annual payments are added to the annual equivalent amount and taxed, with the difference being the tax on the bonus

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    4 views1 page

    Employees Tax Summary

    Uploaded by

    Given Refilwe
    Employees tax is calculated as follows: 1) Remuneration includes income but excludes certain allowances, government pensions, and fully reimbursed expenses. 2) Allowable deductions include employee pension and RAF contributions (limited), income protection insurance (option of employee or employer), and medical scheme contributions (option of employer for those over 65). 3) Tax is calculated on the balance of remuneration (BOR) and annual equivalent amount. 4) Rebates are subtracted to determine the employee tax liability which is divided by 12 to calculate the monthly tax amount. 5) Annual payments are added to the annual equivalent amount and taxed, with the difference being the tax on the bonus

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    of 1

    EMPLOYEES TAX

    WITHOUT ANNUAL AMOUNTS R


    REMUNERATION  Must be income  NOT exempt income xxx
    Excluded:
     50% of public officer allowances
    Independent contractors
     80% of TA and R of use of MV Gov. pensions / grants
    Fully reimbursed
    (20% if ≥ 80% for BUSINESS) Annuity ito divorce order
    N/A: TA R/km ≤ fixed rate table for ≤ 8000km (R3.16p/km)
    LESS: a. EE PF contribution (LIMITED to allowable) (xxx)
    Par 2(4)
    b. EE RAF Contribution (LIMITED to allowable)
    ALLOWABLE
    DEDUCTIONS c. EE income protection insurance policy (option E’R)
    d. ER contribute income protection insurance policy
    e. EE (≥ 65) medical scheme (@ option of ER)
    f. ER s18A donation on EE behalf (LIMITED: 5% of a-e)

    = BoR Xxx

    ANNUAL EQUIVALENT (X 12) Xxxx


    TAX THEREON (According to tax table) Xxx
    LESS: (xxx)
    Primary Rebate
    LESS: Par 9(6) (xxx)
    s6A medical
    rebate
    EE TAX LIABILITY A
    *** PER MONTH (A ÷ 12) xxxx

    WITH ANNUAL AMOUNTS R


    ANNUAL EQUIVALENT (X 12) Xxxx

    + ANNUAL Eg: bonus


    PAYMENT
    TAX THEREON (According to tax table) Xxx
    LESS: (xxx)
    Primary Rebate
    LESS: Par 9(6) (xxx)
    s6A medical
    rebate
    EE TAX LIABILITY (B)
    TAX ON BONUS = (B) – (A) (C)

    TAX PAYABLE IN MONTH WITH ANNUAL PAYMENT = *** + (C)

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