I am employed as an independent contractor working 6 hours a week for R5625 monthly before tax. I only work 8 months of the year and have been told by law I should be taxed 25% as PAYE. Is this correct?
As a contractor 25% is the correct percentage to be taken off, however you can ask your employer to deduct 0% as you fall below the tax threshold provided you can prove you do not earn any other income.
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