How is tax calculated on on half-yearly payments?
By Marc Sevitz · Updated
However, I receive an extra R30 000 twice a year. For these two months PAYE is deducted at the rate given in the table as if I was earning R55 000 every month! Is this correct? Must the R30 000 payments be taxed at another rate?
Your employer can use the balance of remuneration whereby the work out how much the tax would be before and after the extra payment and pay the difference. However if more PAYE was deducted you will be entitled to claim this back when you file your return.