How much tax do I pay on R6000 a month?

Posted 1 February 2013 under Tax Q&A
I am asking on behalf of someone...
She earns R6000 a month and there is no deduction coming off, that is the amount deposited into the bank account. With that income every month, what deduction should her employer be taking off every month??

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TaxTim TaxTim says:
1 February 2013 at 11:41

If your friend is earning R6000 per month then her employer should be deducting PAYE of R1520 for the year divided by 12 for each month.

Yvie says:
1 February 2013 at 12:00

Thank you so much for replying to me promptly. So they should only be taking off PAYE and no tax too? How is the above amount of R1520 calculated? Also how and who does this R1520 go to? Can this be paid over to whoever once a year or must be paid over every month to the relevant person?

TaxTim TaxTim says:
1 February 2013 at 12:40

PAYE is short for Pay-As-You-Earn which is the tax paid by salaried employees on their monthly income. This gets paid over by your employer to SARS each month and at the end of the tax year you have to complete a tax return. If you have no other income and no dedcutions then you just complete the return and don't have to pay any money in to SARS. You can see it as a pre-payment of tax.

The amount is worked out based on the tax tables provided by SARS. The first 0-R160 000 is taxed at 18%. After working out the 18% you are allowed to take off R11 440 from that and the remainder is tax that you owe, which would be divided by 12 for each month.

Yvie says:
1 February 2013 at 12:46

Thank you so much!!!
You have been most helpful!!!

TaxTim TaxTim says:
1 February 2013 at 12:50

Only a pleasure! Glad I could help!

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