Contract work Tax

[purple face]

are contract workers Taxed differently?
I started a 3 month Contract and ive asked them how much I will be Taxed they cant tell me.
do you think its the normal 25%?

 

[The_Ogre]

You pay your own EVERYTHING. There's no hand-holding regarding your finances when you're doing contract work.

 

[purple face]

You pay your own EVERYTHING. There's no hand-holding regarding your finances when you're doing contract work.

they asked for my tax number and they said they will deduct it

 

[AchmatK]

are contract workers Taxed differently?
I started a 3 month Contract and ive asked them how much I will be Taxed they cant tell me.
do you think its the normal 25%?

Depending on certain conditions, 25% is standard.

Look up interpretation note 17 issue 5 on the sars website as well as interpretation note 35 issue 4 and the 2022 guide for employers i.r.o. Employee tax.

 

[AchmatK]

they asked for my tax number and they said they will deduct it

Loopholes that existed before where employees would contract in to the company and no tax deducted have been closed over the years. There is very little wriggle room for companies to not deduct the 25% from directly contracted individuals.

Simply registering your own company to bill them also does not work anymore.

 

[The_Ogre]

they asked for my tax number and they said they will deduct it

Ah, then follow @AchmatK 's advice instead of the hogwash I was spewing. I'm out of the contracting game for yonks

 

[diapason]

Yes. You will pay 25% but bear in mind that amount is not final. Depending on your level of earnings you could end up paying in upon assessment.

 

[purple face]

Yes. You will pay 25% but bear in mind that amount is not final. Depending on your level of earnings you could end up paying in upon assessment.

im earning a extremely low amount of money 20k its a short contract only 3 months. what tax will be deducted from that amount.

 

[Y'all Qaeda]

im earning a extremely low amount of money 20k its a short contract only 3 months. what tax will be deducted from that amount.

Is that the total over the three months? How will it be paid, lump sum or split into three payments? Are you earning any other income during this time, as you get taxed on your total income.

 

[Crayons]

But you can deduct all related expenses, like website maintenance, advertising, wear + tear on cameras and lighting etc