How much is PAYE tax in South Africa?

2019 tax year (1 March 2018 – 28 February 2019)

How is PAYE calculated in South Africa?

1. Year-to-date remuneration = R10,000 + R20,000 = R30,000.
2. Annual equivalent = R30,000 x 12/2 = R180,000.
3. Tax calculated on R180,000 as per tax tables = R18,333.
4. PAYE payable for April = R18,333 x 2/12 – R627. 75 (previous tax paid) = R2,427.75.

How much tax do you pay when you are PAYE?

You pay 0% on any earnings up to £12,500. You pay 20% on anything between £12,501 – £50,000. You pay 40% on earnings between £50,001 – £150,000. You pay 45% on anything you earn over £150,001.

How do I pay PAYE to SARS?

The following payment methods are available:

1. eFiling.
2. Electronic payments (EFT)
3. Payments at a bank: All payments can be made at any ABSA, Capitec, FNB, Nedbank or Standard Bank branch.
4. Manual forms of payments will no longer be accepted by SARS. Cheques posted / delivered to SARS will be returned to the client.

How is the PAYE calculated?

When your employer calculates your PAYE, your earnings get multiplied by 52 weeks, 26 weeks or 12 months (depending on how often you get paid) to get an annual amount, before being applied to the SARS tax tables to calculate annual tax. The employer deducted PAYE of: R193. 50 x 3 = R580. 50 in total.

Does everyone pay PAYE?

Everyone, with the exception of the self-employed, is required to pay PAYE tax. Before you receive your wages, your employer tallies up how much tax, USC and PRSI you should contribute and deducts it before giving you your pay cheque.

How is PAYE deducted from salary?

PAYE is calculated monthly and paid to SARS by your employer monthly, even if you are paid weekly / fortnightly. This is then divided again by the same work period to get the monthly PAYE tax which is then withheld, displayed on your IRP5 and paid over to SARS.

Who must register for PAYE?

If you pay any form of remuneration to employees, you are required by law to register for Pay As You Earn (PAYE). You are then required to deduct, submit and pay the correct amount of PAYE to SARS every month. This needs to happen before the last working day, before the 7th of each month.

What is PAYE number South Africa?

Income tax number is for your personal income tax or corporation tax. PAYE reference number is for an Employer who deducts and pays PAYE (i.e. employee’s tax) to SARS on behalf of employees.

Who qualifies for PAYE?

PAYE is also an eligible repayment plan for borrowers seeking to qualify for Public Service Loan Forgiveness. In order to qualify for PAYE, you need to have borrowed your first federal student loan after October 1, 2007, and you need to have borrowed a Direct Loan or a Direct Consolidation Loan after October 1, 2011.

Do foreigners pay income tax in South Africa?

Foreign residents pay the same income tax in South Africa as local citizens. However, non-resident taxpayers only pay tax on income from South Africa and not worldwide.

How does income tax work in South Africa?

Income tax in South Africa is collected by the South African Revenue Service (SARS). All residents living and working in South Africa are liable to pay income tax in South Africa, although the amount of SARS income tax you must pay depends on your tax residency status and earning bracket. South Africa operates on a residency-based taxation system, meaning that residents (whether permanent or temporary) pay tax on their worldwide incomes.

Who pays tax in South Africa?

Corporate, business, or company tax in South Africa is payable by all registered businesses in the country to the South African Revenue Service (SARS for short). Generally, South African-based businesses are liable to pay South African corporate tax on their worldwide income.

What is the corporate tax rate in South Africa?

Company tax rate South Africa. The corporate tax rate in South Africa is a flat rate of 28% for all companies. This is slightly above the average corporate tax rate for Africa overall, which is 27.46%, and above the global average of 23.62%.