Page 16 - Additional Notes on Employees Tax

Example

 Mr Y has been a director of ABC (Pty) Ltd since 1

January 2000. His annual salary from ABC (Pty) Ltd is

based on the company’s profits and is determined each

year when the accounts of the company are completed.

The most recent accounts for the company are for the

year ended 31 December 2011, and the salary of R300

000 paid to Mr Y for that year was included in Mr Y’s

taxable income for the year of assessment ended 28

February 2012. Mr Y pays RAF contributions of R25

000 each year.

Calculate Mr Y's deemed remuneration

16