Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Tax on project bonus?

Posted 26 May 2014 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
If I my gross salary is R22 000 and my employer pay me R10 000 as a project bonus then how do they calculate my tax? I've been liable for R 3,421.27 on my salary before they paid me that project bonus. Now they deducted R 5,986.79. is that correct? Can you please tell me how do they calculate it? Are there separate tax rates on salary and project bonus or the calculate it like a person with R32 000 salary per month?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
26 May 2014 at 20:51

They calculate the tax on the bonus on using the marginal rate of tax you pay which is 25%. So they use the R10 000 x 25% to get to the tax and add that to your normal tax on your salary.

Siroos says:
26 May 2014 at 20:58

Thanks a lot for your quick response. Then will it be refundable? I mean that 25% or portion of it?

TaxTim TaxTim says:
26 May 2014 at 21:05

You need to look at the income in entirety at the end of the year and put the amounts against the tax tables in order to determine how much you will be refunded. In this case, given they are using the marginal rate of tax you are most likely not going to refunded.

Siroos says:
26 May 2014 at 22:05

Thanks a lot.

TaxTim TaxTim says:
27 May 2014 at 19:06

Only a pleasure!


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started