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Timing of Bonus Payments, taxable or not?

Posted 10 July 2013 under Tax Questions



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I received a bonus for the calendar year 2011. The bonus was paid in March 2012 (after tax year 2012 ended) as the company needed to finalise year end etc. I left the company. The company "backdated" this bonus to tax year 2012. I however I feel that since the payment was made in tax year 2013 that an IRP5 should be issued for 2013.

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TaxTimTaxTim says:
10 July 2013 at 12:02

Income such as bonuses are taxed in the year to which they accrue, meaning that when you earned the bonus or the period of which the bonus relates to will be the year that it is taxed in regardless of when I gets paid.

Going forward though, SARS have amended this law as it can create some undue tax consequences, but that would only affect you from the current calendar year going forward.


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