Question on Tax

[CrazYmonkeY159]

So I have a 2month Internship coming up over the June/July break, I'm still in varsity. Now they are going to be paying me some money for my efforts, so my question is, do i have to do any admin on my side for SARS or anything?

 

[Bundu]

they will probably deduct 18% for tax, but as you will most likely be earning less than the minimum taxable limit for the 2012 tax year, you should not be paying any tax and will probably have to claim it back again IF your employer gives you an IRP5, which he probably wont....

 

[Rockhound]

Unfortunately yes you will.
Sars requires all employees to have a tax number even if you earn below the tax threshold.
Also a tax number is a requirement for your employer to be able to issue you with a IRP5 or IT3(if no tax was deducted).
If its a big company you will definitely need a tax number.
If its maybe a small company they will classify to as a casual worker and you can get away without it.
Best to enquire with there HR/payroll department.
Here is the link for the IT77 if you want to register:
http://www.sars.gov.za/home.asp?pid=4153&tid=60&s=forms&show=1297#IB-IT 77 - Application for registration as a taxpayer or changing of registered particulars Individual

Also. If you earned less than R120,000.00 from one employer you will not have to submit a return but if they did deduct any tax
from you, you might be able to get something back if you do submit your return.
Hope this helps.

 

[milomak]

iirc -
i) there is a threshold below which you don't pay Income Tax (IT)
ii) the threshold is based on an annual figure
iii) if you work for less than a year, you must annualise your earnings
iv) if iii) is above the treshold you are liable to pay IT

this is trying to remember stuff i learnt some 10 years or so back

 

[Icarium]

iirc -
i) there is a threshold below which you don't pay Income Tax (IT)
ii) the threshold is based on an annual figure
iii) if you work for less than a year, you must annualise your earnings
iv) if iii) is above the treshold you are liable to pay IT

this is trying to remember stuff i learnt some 10 years or so back

iii is only true from the employers perspective. If they do deduct tax and those 2 months were the only months you worked you'll be able to submit a tax return and claim it back. Although for an internship it's unlikely your annualised income will exceed the threshold anyway.

 

[milomak]

iii is only true from the employers perspective. If they do deduct tax and those 2 months were the only months you worked you'll be able to submit a tax return and claim it back. Although for an internship it's unlikely your annualised income will exceed the threshold anyway.

it's from both ways.

i was a vac student. i am about 80% sure I paid no tax. Therefore my employer paid no tax (because the annualised rate was below the treshold).

from a tax man pov you have to see that he doesn't want a highly skilled person paid just under the annual threshold for one month's work. while my example may not be robust enough, i am trying to show the kind of thinking tax authorities apply.

therefore while the annualising bit is actually something i do seem to remember from back in the day; it also seem sto make sense to me from the general manner tax authorities work.

of course if there is actual practise that works otherwise or legislation i am more than willing to admit defeat.

 

[IceDreama]

So I have a 2month Internship coming up over the June/July break, I'm still in varsity. Now they are going to be paying me some money for my efforts, so my question is, do i have to do any admin on my side for SARS or anything?

This will depend on how much you earn over the period. Yes you will have to pay tax. HOWEVER, tax is calculated by obtaining the 'annual equivalent' which is the monthly amount multiplied by 12. Then, assuming you are in the lowest tax bracket, multiply it by 18% and deduct your primary rebate which is R10,756 (I think) and then divide the remaining amount by 12 to determine your monthly tax liability. So if after deducting your primary rebate, the amount is less than zero, you will no have any tax deducted. Simple as that.

 

[Icarium]

it's from both ways.

i was a vac student. i am about 80% sure I paid no tax. Therefore my employer paid no tax (because the annualised rate was below the treshold).

from a tax man pov you have to see that he doesn't want a highly skilled person paid just under the annual threshold for one month's work. while my example may not be robust enough, i am trying to show the kind of thinking tax authorities apply.

therefore while the annualising bit is actually something i do seem to remember from back in the day; it also seem sto make sense to me from the general manner tax authorities work.

of course if there is actual practise that works otherwise or legislation i am more than willing to admit defeat.

My tax studies are about 15 years out of date