I am currently earning a salary as a designer in a design company and now also earning an extra income by designing a disability newspaper on weekends, my company has finally gotten funding from the government and they are back paying me R5000 for doing the newspaper layout, how much do I need to be taxed on this amount? They have taxed me R900, is this correct? Thank you for your help.
Your company has taken the lowest tax rate of 18% as a PAYE deduction. This is acceptable for once off payments, but at the end of the tax year your actual tax paid on this amount will be calculated which may be more or less depending on the rest of your income.
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