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What is a tax threshhold?

Posted 17 September 2012

Tax free R11,440, then 18% tax up to R160,000pa / Tax threshhold = R63556 - what is this tax threshhold?

TaxTim TaxTim says:
13 September 2012 at 10:48

The tax threshold is the amount at which you first begin paying tax. So if you had to take R63 556 and multiply by 18% then take the answer and deduct R11 440 which is the primary rebate (amount SARS gives back based on your age) you would get a tax liabilty of 0.

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