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Thread: help with student tax! confused!!

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    help with student tax! confused!!

    i am a student that has currently undertaken vac work for a company.. the daily rate that i am recieving is R400 i am paid weekly which totals to R2000 a week. i was told that i was being taxed at 25% which is the rate at which Non-standard employment is taxed,which totals R500 a week for tax(totalling R2000 for 4 weeks work). i am confused now as to why i am being taxed if my income is way under the tax thresh hold. do i have to submit a tax return and then i will recieve the money back? how does this work i am confused..please help

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    Hi there,

    The 25% tax deduction is a standard rate deducted from casual staff or some times independent contractors.

    Although you'll need to wait until July 2013 (!!) to receive your money back, provided you remain below a 25% tax bracket, you will receive some or all of that deducted tax back on assessment when you submit your 2013 tax return (I'm assuming you've earned that money in the current month?).

    Just ensure that come May/June 2013 you remember to request your IRP5 (or IT3a) tax certificate from them.

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    Awesome, you are getting awesome pay for a student.
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    Quote Originally Posted by DavidvN View Post
    Hi there,

    The 25% tax deduction is a standard rate deducted from casual staff or some times independent contractors.

    Although you'll need to wait until July 2013 (!!) to receive your money back, provided you remain below a 25% tax bracket, you will receive some or all of that deducted tax back on assessment when you submit your 2013 tax return (I'm assuming you've earned that money in the current month?).

    Just ensure that come May/June 2013 you remember to request your IRP5 (or IT3a) tax certificate from them.



    so as long as i stay under the tax thresh hold value of R65000 i should recieve all that i submitted back right? yes it is for this current month..so then i have to wait till the end of the year to get my IRP5 and then another 6 months to recieve R2000? thats pretty ridiculous.

    why do i have to submit the tax if im only going to get the same amount back??? and why do i have to submit it if i am below the thresh hold? it seems a pointless waste of time to me.

    also its a pretty sloppy process that a student who doesnt earn as much as a full time ,has to pay 25% where as anyone earning less than R150000 Pays only 18%..

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    I don't think it has anything to do with you being a student, but rather with you not being employed full time. Say you were working for other companies part time as well and you went over the tax threshold then it will make sense as to why you are being taxed more. Full time employees can only earn from one source whereas part timers can earn a lot more from a lot of different places. Maybe speak to them and asked that they change your contract to full-time for tax purposes only?

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