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Two IRP5 - why is refund lower?

Posted 10 July 2015 under Tax Questions



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Greg says:
10 July 2015 at 19:56

I have two IRP5s, when I submit each tax return individually my refundable amount on one is - R28000 on and -R24000 on the other. When I add them together my total refundable amount is -R18000?

I don't understand how the amount would come down? Surely they should be added together?

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TaxTimTaxTim says:
10 July 2015 at 20:24

Your total income is added together and taxed against tables on which the tax rate / percentage rises as the income level rises. So when the tax as PAYE was deducted by your employer per IRP5 it was based on the income being the only income earned (in their minds), when in fact both incomes actually result in a higher tax rate and therefore the refund is not as high as if they were submitted separately.


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