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How much tax is paid on R5,500 and less and is tax paid on commission?

Posted 25 November 2012

My business partner and I have just opened a spa and are paying our therapists less than R5,500 per month. They then also get 10% commission on all treatments performed. Are they required to pay tax, firstly on their salary and secondly, on their commission? What about gratuities?

Also, we have submitted the registration forms for Income Tax and PAYE - we now have a tax number but are waiting to hear back from SARS about PAYE (when I called the call centre they said that the forms have been returned so we expect something may be wrong with our application). We have already started operating and are due to pay our therapists their first salary at the end of November. Are we going to have to pay a penalty seeing as we are not yet set up to pay tax?

TaxTim TaxTim says:
1 March 2013 at 11:43

Keep the money you would have paid over to SARS aside for PAYE (Unless you have paid them the full salary) and you can submit for periods prior to registration. Otherwise the best to do is as soon as you are registered you would then submit the PAYE forms and pay over the tax going forward.

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