Tax on project bonus?

By Marc Sevitz · Updated 26 May 2014

If I my gross salary is R22 000 and my employer pay me R10 000 as a project bonus then how do they calculate my tax? I've been liable for R 3,421.27 on my salary before they paid me that project bonus. Now they deducted R 5,986.79. is that correct? Can you please tell me how do they calculate it? Are there separate tax rates on salary and project bonus or the calculate it like a person with R32 000 salary per month?

TaxTim Marc said:
26 May 2014 at 20:51

They calculate the tax on the bonus on using the marginal rate of tax you pay which is 25%. So they use the R10 000 x 25% to get to the tax and add that to your normal tax on your salary.

Siroos said:
26 May 2014 at 20:58

Thanks a lot for your quick response. Then will it be refundable? I mean that 25% or portion of it?

TaxTim Marc said:
26 May 2014 at 21:05

You need to look at the income in entirety at the end of the year and put the amounts against the tax tables in order to determine how much you will be refunded. In this case, given they are using the marginal rate of tax you are most likely not going to refunded.

Siroos said:
26 May 2014 at 22:05

Thanks a lot.

TaxTim Marc said:
27 May 2014 at 19:06

Only a pleasure!

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