How to calculate gross from net salary
By Marc Sevitz · Updated
That is correct.
For SA residents: "Gross income" means the total amount of worldwide income that you earned during the tax year, excluding income that is of a capital nature.
Note that "income" is also money that is owed to you for work you performed, even if not paid to you yet - for example, payment for a service that you performed.
Net pay is take-home pay. It refers to income after accounting for ie. retirement contributions, taxes, and so forth.
Taxable income = total income (gross income - exempt income) - allowable deductions + taxable capital gains.
Please see our blog on https://www.taxtim.com/za/guides/the-complete-tax-deductibles-guide
Exempt income is income that is not taxed e.g. local dividends and donations received.
Taxable capital gains are the taxable portion of money derived from selling your possession, e.g. sale of your house.
Please make use of our SARS income tax calculator and work backwards to get to the number you require.