Page 52 - P6 Slide Taxation - Lecture Day 7 - Various Topics

Balance of Renumeration

The balance of remuneration is the remuneration remaining after deducting the
following amounts paid during the month in respect of the employees’ tax therefrom:

• any contribution made by the employee concerned to a pension fund or
provident fund), limited to the allowable deductions in terms of s 11F having
regard to the remuneration and the period in respect of which it is payable (par

2(4)( a ))
• at the choice of the employer (and if proof of payment has been furnished to
him), any contributions to a retirement annuity fund made by the employee,
limited to the allowable deduction in terms of s 11F having regard to the

remuneration and the period in respect of which it is payable (par 2(4)( b ))
• any contribution made or amount paid by the employer to any retirement annuity

fund on behalf of or for the benefit of the employee, but limited to the deduction
to which the employee is entitled under s 11F having regard to the remuneration
and the period in respect of which it is payable (par 2(4)( b A)), and
• so much of any donation made by the employer on behalf of the employee – as

does not exceed 5% of that remuneration after deducting therefrom the
aforementioned amounts, and – for which the employer will be issued a receipt as
contemplated in s 18A(2)( a ) (par 2(4)( f )).

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