If I was given a sign on bonus and it was taxed. Condition on the bonus is to stay employed for 3 years. I received the bonus after tax. If I leave in under 3 years how do I reclaim the tax or is it a loss.
If you leave, the bonus will be deducted from your salary and the related tax will also be set off against your current tax bill to reduce it. Therefore it won't be lost.
Please Register for TaxTim and let us assist you to complete and submit your tax return to SARS.
Tatendasays: 12 April 2016 at 12:03
Thank you. Does it matter or is it messier if it's over different tax years. I.e I got bonus in 2014 tax year and I resign in 2015 tax year. How is this corrected?
TaxTimsays: 12 April 2016 at 12:11
It shouldn't make a difference - the bonus receipt and tax will be processed in 2014, and then the reverse should be processed in 2015 (i.e. bonus pay back from you and reduction in tax). Your payroll department should process the bonus pay back through the payroll system so it appears on your payslip and IRP5 for 2015.
Tatendasays: 12 April 2016 at 12:12
Thank you. I fully understood.
TaxTimsays: 12 April 2016 at 12:15
Only a pleasure!
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.