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In Maternity case, will SARS use 8 months or use total salary for tax year?

Posted 19 February 2014

Both my wife and I receive a salary from our CC. She was on maternity leave for 4 months (Aug-Nov) in which she didn't receive any salary, only her UIF.

Everything is now back to normal. Last night I came to realize that there is more profit in the CC than I would like and it would be better if I pay that profit out as a salary in Feb.

My question is thus...

Lets assume her total salary for the 2014 tax year will be R120k

Will she be taxed R9520 (R10k average salary over 12 months) Thus total Salary of R120k for the 2014 tax year or
Will she be taxed R14218 (R15k average salary over 8 months)?

TaxTim TaxTim says:
20 February 2014 at 14:05

Regardless of how she is paid, the overall tax amount will be based on the total income for the year between March and February. The amounts paid per month will determine her PAYE, however on an annual basis the tax is the same which could then result in a refund if over taxed monthly.

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