How do rebates work?

I have started a new job and have been told my salary will be R7000 a month, on top of this, they are saying that I am going to be taxed 18% per month. I am just a bit confused. . This seems very high for such a small salary. . . And then there comes the topic of rebates. I have been told that at the end of the tax year I can claim this back? But this is all going over my head, can you please confirm that the 18% a month tax is correct (i do not have any medical aid, retirement funds etc) and then what the process is for claiming back, if I can at all?

Taxes are paid based on income earned and in South Africa these rates get higher as you earn more. The lowest rate in SA is 18%, however SARS only taxes income earners if they earn above R73 650 for the year. So you will in fact only be taxed on R10 350 at 18%. Unfortunately you cannot claim this back as a refund. A rebate is something entirely different. Please have a look at our article on Returns, Rebates and Refunds to get a better understanding.

Thanks for your reply. So should I be getting charged 18% tax on my monthly salary of R7000? Or is that the total I will be charged per annum? Basically, what will my take home pay be each month?

You can make use of our SARS income tax calculator to work out how much tax you will be paying each year/month.