Income Tax question

[Dolby]

R160,001 - R250,000.00 is R28,800 + 25% taxable income above R160,000
R250,001 - R346,000 is R51,300 + 30% taxable income above R250,000

If one earns R15,000pm (R180,000pa) and according to SARS tables above the person pays R33,800pa total tax (R2,816.00pm). In other words in a basic situation, he gets paid R15,000.00-R2,816.00 tax?

What happens if this spikes pushing him into another tax bracket for a month - say for example he resigns and gets paid leave - so that month is R25,000.00?It'd fall into the higher bracket?

Or is it calculated on a yearly and corrected end tax year?

Hope that makes sense

 

[Sinbad]

R160,001 - R250,000.00 is R28,800 + 25% taxable income above R160,000
R250,001 - R346,000 is R51,300 + 30% taxable income above R250,000

If one earns R15,000pm (R180,000pa) and according to SARS tables above the person pays R33,800pa total tax (R2,816.00pm). In other words in a basic situation, he gets paid R15,000.00-R2,816.00 tax?

What happens if this spikes pushing him into another tax bracket for a month - say for example he resigns and gets paid leave - so that month is R25,000.00?It'd fall into the higher bracket?

Or is it calculated on a yearly and corrected end tax year?

Hope that makes sense

They may deduct more now but if they don't you will have to pay itin at assessment time

 

[Dolby]

Thanks Sinbad.

I'd prefer assessment time

 

[droidx]

R160,001 - R250,000.00 is R28,800 + 25% taxable income above R160,000
R250,001 - R346,000 is R51,300 + 30% taxable income above R250,000

If one earns R15,000pm (R180,000pa) and according to SARS tables above the person pays R33,800pa total tax (R2,816.00pm). In other words in a basic situation, he gets paid R15,000.00-R2,816.00 tax?

What happens if this spikes pushing him into another tax bracket for a month - say for example he resigns and gets paid leave - so that month is R25,000.00?It'd fall into the higher bracket?

Or is it calculated on a yearly and corrected end tax year?

Hope that makes sense

The monthly salary gets annualised in order to calculate the taxation thereon.
In the month R25 000 is earned the taxation will be calculated on R300 000.
It is normally fairly accurate cone year end if calculated that way.

As Sinbad says, if the tax is not taken off in that month it will have to be paid in cone assessment time.