We have paid a sign on bonus of R50,000 to a director in December this year. How would you calculate the PAYE on it if say the directors will earn a salary of 50K per month for January and February? The director did not earn anything before December.
You could apply the normal tax tables and tax according to the amount of R50 000 or you could add up the total income with the bonus and without the bonus work out the tax on both and then the difference is the tax on the bonus.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.