Annual bonus and Tax
By Marc Sevitz · Updated
Is it possible for annual bonuses to be taxed, lets assume that I earn R4880. 00 a monthly, and how much should my annual bonus? and how much will it be taxed if possible?
Your annual bonus should be added to your monthly salary and taxed per the normal tax tables for individuals.
However, if you are earning below the tax threshold (currently R73,650 per year) you won't pay any tax.
A monthly salary of R4,880 is below the threshold and wont be taxed. You will only be taxed if your bonus, when added to your monthly salary, pushes you above an annual amount of R73,650.
However, if you are earning below the tax threshold (currently R73,650 per year) you won't pay any tax.
A monthly salary of R4,880 is below the threshold and wont be taxed. You will only be taxed if your bonus, when added to your monthly salary, pushes you above an annual amount of R73,650.