I would like to ask you a question. I started working December 2012 and only worked 3 months this tax year. I earned R25000 a month. A lot of my friends said we will get most of the tax paid back for those 3 months because we just started working. Is that true or not? Please can you explain it to me?
Yes you would get most of your tax back. This is because you payn monthly PAYE as if you earn the monthly amount for a full year, so in your case R25 000 per month x 12. So you are taxed on R300 000 whebpn in fact your earnings are R75 000. Your true tax will be (R75000 - R63556) x 18% and the difference between that and what you have paid will be a refund.
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