Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

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

Tax on conditional sign on bonus

Posted 12 April 2016 under Tax Questions


Hi, I'm Tim!
I'll help you do your Tax Return with Confidence
Quickly, Easily
And Correctly
Do your Tax Online with Expert Help from Me, Step-by-Step.
LEARN MORE

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Tatenda says:
12 April 2016 at 11:09

If I was given a sign on bonus and it was taxed. Condition on the bonus is to stay employed for 3 years. I received the bonus after tax. If I leave in under 3 years how do I reclaim the tax or is it a loss.

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

TaxTimTaxTim says:
12 April 2016 at 12:00

If you leave, the bonus will be deducted from your salary and the related tax will also be set off against your current tax bill to reduce it. Therefore it won't be lost.

Please Register for TaxTim and let us assist you to complete and submit your tax return to SARS.


Tatenda says:
12 April 2016 at 12:03

Thank you. Does it matter or is it messier if it's over different tax years. I.e I got bonus in 2014 tax year and I resign in 2015 tax year. How is this corrected?


TaxTimTaxTim says:
12 April 2016 at 12:11

It shouldn't make a difference - the bonus receipt and tax will be processed in 2014, and then the reverse should be processed in 2015 (i.e. bonus pay back from you and reduction in tax). Your payroll department should process the bonus pay back through the payroll system so it appears on your payslip and IRP5 for 2015.


Tatenda says:
12 April 2016 at 12:12

Thank you. I fully understood.


TaxTimTaxTim says:
12 April 2016 at 12:15

Only a pleasure!


Get Tax Deadline Reminders, News and Tips
 

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 →

Hi, I'm Tim!
I'll help you do your Tax Return with Confidence
Quickly, Easily
And Correctly
Do your Tax Online with Expert Help from Me, Step-by-Step.
LEARN MORE