Results 1 to 3 of 3

Thread: directors remuneration

  1. #1
    New Member
    Join Date
    Nov 2018
    Location
    Cape Town
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    directors remuneration

    Good afternoon

    I am a shareholder / Director in my company and also a employee. For the passed 7 months the company has gone through a dip and non Directors / shareholders did receive remuneration, however their remuneration was transferred to their loan account after PAYE deductions (nett only)

    My Question:
    1. On financial year end, what happens to this accumulated remuneration within a householders loan account ?
    2. Can this remuneration be written off or is the company still liable to pay each working shareholder out on remuneration not paid for the period of 7 months.
    The Company is now moving to be self sustainable after a 7 month battle to not file for liquidation.

    Regards.

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,058
    Thanks
    3,184
    Thanked 2,585 Times in 2,180 Posts
    Blog Entries
    12
    Why do you want to write off the loan accounts - especially when you have paid the PAYE on the remuneration?

    If you delay payout of the loan accounts, you may get it (your after-tax money) eventually.
    If you write it off, you're giving up on ever getting it paid out.

  3. #3
    Diamond Member Justloadit's Avatar
    Join Date
    Nov 2010
    Location
    Johannesburg
    Posts
    2,932
    Thanks
    108
    Thanked 593 Times in 503 Posts
    Blog Entries
    1
    Just a note as well. New legislation has something on about interest free loans, that the fact that no interest is charged, increases the profit of the company, and tax must be paid on this, on the other side receiving interest increases your income, which may incur tax.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar pumping, Solar Geyser & Solar Security lighting solutions - www.microsolve.co.za

Similar Threads

  1. [Question] Foreign Remuneration on Tax Return IT12
    By sandilotz in forum Tax Forum
    Replies: 0
    Last Post: 28-Oct-18, 01:02 PM
  2. [Question] Director remuneration - Correction
    By ConstructionAccounting in forum Accounting Forum
    Replies: 3
    Last Post: 05-May-17, 08:45 AM
  3. Monthly remuneration
    By betst07 in forum Accounting Forum
    Replies: 2
    Last Post: 19-Nov-16, 05:26 AM
  4. [Question] How to go about a change in remuneration structure
    By dellatjie in forum Labour Relations and Legislation Forum
    Replies: 3
    Last Post: 20-May-13, 07:57 AM
  5. Civil service remuneration strategy.
    By Dave A in forum South African Politics Forum
    Replies: 1
    Last Post: 06-Jun-07, 10:40 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •