Page 5 - Employees tax

EMPLOYEES TAX

BOP

• Once you have determined that a payment is

remuneration, the amount on which employees’ tax must

be withheld is “balance of remuneration”.

• Employees’ tax must be withheld on the balance of

remuneration, as determined

• The employee’s tax calculation is based on what the

employer knows at that point in time when determining

the employees’ tax. For example, the employer cannot

deduct the medical scheme fees tax credit (section 6A)

from the employees tax payable (per paragraph 9(6) of

the 4th Schedule) if the employer does not know and has

proof that the employee belongs to a medical aid, and if

so, how many dependents are registered on the medical

aid.

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