13 March 2014 at 9:46
The primary rebate is the tax threshold, that is the income level which you do not pay tax, multiplied by the lowest tax bracket. In other words it is the amount of tax SARS says you do not need to pay.
First R70 700 is tax free.
The lowest tax bracket is 18%
R70 700 x 18% = R12 726 which is the primary rebate.
Therefore if your tax owing is R20 000 you would take off the R12 726 and that would be what is payable to SARS.