Personal Income Tax - Easy as this ?

[Dolby]

Tables on this site https://www.taxtim.com/blog/sars-tax-rates-tables-2014

If a company pays R300,000 per year - only the cash portion (no medical, no pension etc) is it really as simply as using this line : R258 751 – R358 110 R53 096 + 30% of the amount above R258 750

T get 53,069 + 12,375 = 65,444 and divide by 12 - so R5,453.00 PAYE per month?

Where do they rebates come in?
I hear R12,000.00pa - so that means I can take R1,000 off the amount above, bringing total tax to R4,453pm and a take home of R20,547.00 pretty much exact?

 

[Electric]

It's fairly accurate.

This one is helpful;

http://yourtax.co.za/tax-calculator/2014/

 

[MKFrost]

Total gross annual pay [remember to include bonus if any], minus the annual rebates, then work out tax according to the tables, divide answer by 12.

 

[ToxicBunny]

Tables on this site https://www.taxtim.com/blog/sars-tax-rates-tables-2014

If a company pays R300,000 per year - only the cash portion (no medical, no pension etc) is it really as simply as using this line : R258 751 – R358 110R53 096 + 30% of the amount above R258 750

T get 53,069 + 12,375 = 65,444 and divide by 12 - so R5,453.00 PAYE per month?

Where do they rebates come in?
I hear R12,000.00pa - so that means I can take R1,000 off the amount above, bringing total tax to R4,453pm and a take home of R20,547.00 pretty much exact?

If it's a purely cash salary... No random benefits then yes it is that simple

 

[HavocXphere]

Yearly taxable income > Tables > Less rebate > Divide by 12 = PAYE

Thats ridiculously oversimplified though...

For PAYE the employer will usually only take into account what they can "see"...i.e. if you're on the company RA then they'll work that in too.

 

[Dolby]

Thanks guys.

And one more component - if there is commission/incentive?

I'm guessing cash portion at rate above and commission at another rate altogether?
Are they treated separately ie income is still the 5,453.00 worked out above - and commission entirely different rate?
Or would they treat them both as income and taxed according to the rate above?

 

[MKFrost]

Thanks guys.

And one more component - if there is commission/incentive?

I'm guessing cash portion at rate above and commission at another rate altogether?
Are they treated separately ie income is still the 5,453.00 worked out above - and commission entirely different rate?
Or would they treat them both as income and taxed according to the rate above?

Commissions are added to your annual pay so your total gross pay will consist of annual salary plus any incentives and or commission and the total is then taxed accordingly. There is no separate rate.

 

[ToxicBunny]

Thanks guys.

And one more component - if there is commission/incentive?

I'm guessing cash portion at rate above and commission at another rate altogether?
Are they treated separately ie income is still the 5,453.00 worked out above - and commission entirely different rate?
Or would they treat them both as income and taxed according to the rate above?

Taxed according to the rate above...

Worked out probably on the monthly rate, then adjusted at the end of the year to the annual rate... so some months you may get slightly screwed on tax, then at the end of the year get a bit back.

 

[HavocXphere]

Thanks guys.

And one more component - if there is commission/incentive?

I'm guessing cash portion at rate above and commission at another rate altogether?
Are they treated separately ie income is still the 5,453.00 worked out above - and commission entirely different rate?
Or would they treat them both as income and taxed according to the rate above?

Depending on the exact details you might get more deductions...some are blocked for normal salary earners but available for commission earners. Incentive...would depend on the exact circumstances & I'd be wary of generalizing.