Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

PAYE regulation regarding 'unpaid salaries'.

Posted 23 October 2014 under Tax Questions

Let TaxTim
help you
submit your
Tax returns!




TaxTim will help you:

  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS
in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
As a shareholder/director of a PTY, if I received "unpaid salary" that then accumulates in a loan account, would I still be require to pay PAYE, even if no income as such is received?

This entry was posted in Tax Questions and tagged , , , , , . Bookmark the permalink.

TaxTimTaxTim says:
23 October 2014 at 14:46

Did you record it as a loan or a salary on your books?


Jamii says:
23 October 2014 at 15:20

It has gone into the director loan account since it's my 'unpaid' or equity contribution to the company.
Not entirely sure how it has been entered.

Would you give me the scenario for each, unpaid vs loan?

Thx


TaxTimTaxTim says:
24 October 2014 at 7:27

The directors' loan needs to be repaid within 12 months or it is seen to be a deemed dividend. In order to avoid this you need to charge a normal market related SARS approved interest rate each year.

Otherwise if it has been recorded as a salary, although unpaid, then it needs to attract PAYE.


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Let TaxTim
help you
submit your
Tax returns!




TaxTim will help you:

  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS
in just a few clicks!

Get started