Page 3 - Employees tax
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EMPLOYEES TAX
Employer/Employee
• A resident employer, or a representative employer in the
case of a non-resident employer, is obliged to withhold
employees’ tax on balance of remuneration payable to an
employee.
• Employees’ tax must be paid within 7 days after the end of
the month during which the amounts were withheld by the
employer in terms of paragraph 2(1) of the 4th Schedule.
• Remember that sole traders and partners in a partnership
are not employees, they will be provisional taxpayers. In
practice, however, some sole traders and partners subject
themselves to employee’s tax even though not legally
required to. In other words, the individual will register
himself or herself as an employee on the payroll. The sole
trader or partner uses the employees’ tax system as a
mechanism to pay tax monthly as opposed to 6 monthly
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