Regarding the new tax law on Employee contributions to retirement funds, is it correct to say that from the 1 March the employee portion of 7,5% and the employer portion of 8% must be included in the employee's gross salary and then taxed as a fringe benefit? We were wondering what suggestions you have of how this would appear on the employee's salary slip eg. Gross salary (incl total provident fund %) less Paye, less fringe benefit tax, less Uif? We are really battling to find anyone who knows what to do regarding this issue.
From 1 March 2016, the Employer contribution (not Employee) to a retirement fund is included in income and taxed as a fringe benefit. Please read our blog on the New Retirement Fund Tax Laws for further clarification.
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