[Question] Taxation of income just above threshold

[William Kirkman]

The tax threshold for individuals under 65 is R 83 100. If a person earns R 100 000 pa, is this person taxed on the full R 100 000 or on R 100 000- R 83 100 = R 16 900?

[Krono9]

Only taxed effectively on the balance of R16 900 at 18%.

It should be looked at as follows for the 2021 tax year:

- You are taxed on the full amount of R100k @ 18% = R18 000 per tax table.

- Then you deduct the rebate from the tax payable which is R14 958 for 2021 tax year resulting in the R3 042 tax actually payable to SARS.

[William Kirkman]

Thank you. That is very helpful.