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?
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?
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.
Thank you. That is very helpful.
Did you like this article? Share it with your favourite social network.