What happens if my income varies in different months?Example:Jan-March I earn only R5,000 per monthApril & May I earn R6,500Remainder of the year I earn R5,000I am registered for tax so should I immediately be taxed for the months I earn R6,500?What if it varies even more and I earn a range from R5,000 to R5,990 each month so it goes untaxed but my years payment is over the non-taxed payment collectively for the year, How can I estimate how much I should have in savings if I am requested for payment?Thank you!
You can use the SARS tax rates 2014 for the annual amount to estimate how much tax you will pay. In each month if your salary when annualised is over the threshold then your employer will deduct the correct PAYE and pay it over which may result in a refund at year end once you file your return.
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