Donations Tax – 2014

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Donations tax is levied at a flat rate of 20% on the value of property donated. The first R 100,000 of property donated in each year by a natural person is exempt from donations tax. In the case of a taxpayer who is not a natural person, the exempt donations are limited to casual gifts […]

Skills Development Levy

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Skills Development Levy (SDL) operates also on similar rules that PAYE and many of the definitions are borrowed from the Income Tax Act. Only employers pay SDL and the rate is 1% of the same employee income on which PAYE is calculated. The payment system is through the same channels as PAYE. Employers paying annual […]

UIF

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Unemployment insurance contributions are payable monthly by employers on the basis of a contribution of 1% by employers and 1% by employees, based on employees’ remuneration below a certain amount.

Employees Tax – PAYE

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Every employer in South Africa must withhold PAYE (Pay-as-you-earn) from remuneration paid to an employee. The rate of withholding is determined by the South African Revenue Service and is published in their EMP10 Guidelines. Tax withheld must be paid on or before the 7th day after the month in which remuneration was paid. It is […]

Subsistence Allowance – 2014

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Subsistence may be claimed where an employee with his normal home in South Africa spends a night away from home on business for the employer. Where a subsistence allowance is paid there is no PAYE deduction on the amount. Certain deemed amounts are expended on such business trips. It must be remembered that these deemed […]

Company Cars – 2014

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Company Cars See Employee Tax Structuring for the more detailed rules. The fringe benefit that will be added to an employee for the private usage of a business vehicle is 3.5% of the determined value of the vehicle. Where the vehicle is the subject of a maintenance plan at the time that the employer acquire […]