What is PAYE in South Africa? - when is employees' tax payable?
PAYE which stands for Pay-As-You-Earn is the tax system which the South African Revenue Service uses for collecting income taxes from individuals.
The PAYE system ensures that the revenue service collects taxes evenly throughout the tax year. This reduces the risk of non-payment of taxes.
On the other hand, should an individual have earnings other than employment income then they will most likely be required to register as provisional taxpayers so that the other income can be declared throughout the year.
Frequently asked questions
Do you pay tax on all your income are there any breaks?
Each tax year you are entitled to a tax rebate (a portion of income that is tax free). Your tax is then calculated on the balance accordingly to the scales of the Pay-As-You-Earn system of South Africa.
When is PAYE payable?
Pay-As-You-Earn is usually calculated with each payrun. The Pay-As-You-Earn then becomes payable before the 7th of the following month.
Are student loan repayments tax deductible?
Student loans are not tax deductible.
Do you need payroll software for paye work?
Not necessarily. The trick part is when you have to keep track of the entire year's payroll entries. This process is so time intensive and is not luckily simplified by software so that the payroll goes that much smoother.
How much tax is deducted from Salary in South Africa?
The tax is based on a scale of earnings which looks at the amount of income as per the Pay-As-You-Earn deduction tables ie 2024 PAYE Deduction table
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