Taxation:
Who pays the tax?
Enterprise
Shareholders / Owners
Legal Personality?
Sole Prop - No Owners
Partnership - No Owners
Company - Yes Enterprise
Rebate:
- Subtract rebate based on your age and then that’s final tax payable
Tax threshold:
- Refers to the specific amount or less that you have to earn in order to pay zero taxes
- E.g. You are under the age of 65 and you receive an annual salary of 87301, then you
don’t need to pay tax because when you calculate the tax rebate on that income and
you subtract your rebate then you technically they cancel each other out and you
owe zero taxes payable
Age < 65:
Tax according to scale – Rebate(s) = Tax payable
Income(18%) – 15 714= 0
Income(18%) = 15 714
Income = 15 714 /0.18 = 87 300
Marginal Tax rate:
Tax rate applicable on next Rand of income.
Read off from scale.
Who pays the tax?
Enterprise
Shareholders / Owners
Legal Personality?
Sole Prop - No Owners
Partnership - No Owners
Company - Yes Enterprise
Rebate:
- Subtract rebate based on your age and then that’s final tax payable
Tax threshold:
- Refers to the specific amount or less that you have to earn in order to pay zero taxes
- E.g. You are under the age of 65 and you receive an annual salary of 87301, then you
don’t need to pay tax because when you calculate the tax rebate on that income and
you subtract your rebate then you technically they cancel each other out and you
owe zero taxes payable
Age < 65:
Tax according to scale – Rebate(s) = Tax payable
Income(18%) – 15 714= 0
Income(18%) = 15 714
Income = 15 714 /0.18 = 87 300
Marginal Tax rate:
Tax rate applicable on next Rand of income.
Read off from scale.
