I'm an educator who earns about 20k gross salary and I'm also earning my late husbands annuity income of 10k pm, but whenever I go to SARS to submit my returns it turns out that I owe them a lot of money because in 2013 I paid 28k and now they want 31k so I need help as I dont understand how it gets to that high amount every year.
Unfortunately the fund you receive the annuity from does not know you have other income and therefore takes off too little tax. However you are taxed on all your income combined and the more you earn the more you pay. This is why each year you have to pay into SARS.
Humpsays: 8 February 2015 at 20:50
Is there a way I can avoid to pay so much money every year
TaxTimsays: 8 February 2015 at 23:05
You would need to ask the fund to deduct tax on the annuity each month so that you will not have to pay in at the end of each year.
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