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How do rebates work?

Posted 17 May 2015 under Tax Questions



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Samwise says:
13 May 2015 at 9:55

I have started a new job and have been told my salary will be R7000 a month, on top of this, they are saying that I am going to be taxed 18% per month. I am just a bit confused. . This seems very high for such a small salary. . . And then there comes the topic of rebates. I have been told that at the end of the tax year I can claim this back? But this is all going over my head, can you please confirm that the 18% a month tax is correct (i do not have any medical aid, retirement funds etc) and then what the process is for claiming back, if I can at all?

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TaxTimTaxTim says:
13 May 2015 at 13:37

Taxes are paid based on income earned and in South Africa these rates get higher as you earn more. The lowest rate in SA is 18%, however SARS only taxes income earners if they earn above R73 650 for the year. So you will in fact only be taxed on R10 350 at 18%. Unfortunately you cannot claim this back as a refund. A rebate is something entirely different. Please have a look at our article on Returns, Rebates and Refunds to get a better understanding.


Samwise says:
13 May 2015 at 13:44

Thanks for your reply. So should I be getting charged 18% tax on my monthly salary of R7000? Or is that the total I will be charged per annum? Basically, what will my take home pay be each month?


TaxTimTaxTim says:
13 May 2015 at 18:33

You can make use of our SARS income tax calculator to work out how much tax you will be paying each year/month.


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