Statutory Info

Individuals whose taxable income is only from a single employer and does not exceed R350 000 for the tax year are not required to submit tax returns.

R458 520 per annum with effect from 1 March 2019
R430 944 per annum with effect from 1 March 2018
R403 500 per annum with effect from 1 April 2017
R377 097 per annum with effect from 1 April 2016
R355 752 per annum with effect from 1 April 2015
R332 479 per annum (1 April 2014 – March 2015)
R312 480 per annum (1 April 2013 – Feb 2014)
R292 032 per annum (1 April 2012 – Feb 2013)
R277 860 per annum (01 March 2011 – Feb 2012)
R261 893 per annum (01 April 2010 – Feb 2011) Gazette 32903: This results in a split reporting year unless otherwise changed to 01 March 2010 as been practice for the last couple of years.
R239 172 per annum (01 March 2010)

Payroll Threshold remains at R500,00.00 per annum – 1% Employer Contribution

SARS PAYE Guide for Employers in respect of Employees Tax for the 2018/2019 tax year

EMPLOYER-PROVIDED MOTOR VEHICLES

There is no change to the taxable value per month and the rates remain the same for the 2019/2020 tax year.

80% of the fringe benefit must be included in the employee’s remuneration for the purposes of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes.

Where the vehicle is owned by the employer, the taxable value is 3.5% of the determined value (vehicles purchased before 1 March 2015: the cash cost including VAT; vehicles purchased on/after 1 March 2015: the retail market value) per month of each vehicle.

Where the vehicle is rented by the employer, the monthly taxable value is equal to the actual costs incurred by the employer under the lease as well as the cost of fuel for the vehicle.

Where the vehicle is the subject of a maintenance plan at the time that the employer acquired the vehicle, the taxable value is 3.25% of the determined value.

Refer to SARS website for more details.

Donations to Section 18A approved public benefit organisations are exempt from tax and deductible for income tax if the donation is supported by the necessary section 18A receipt issued by the organisation or, in certain circumstances, by an employees’ tax certificate reflecting the donations made by the employee.

Limitation of donations are as follows:

• Individual donations limited to 10% of taxable income excluding any retirement fund lump sum benefits
• Company donations limited to 10% of taxable income
• Any excess above the 10% cap may be rolled over to subsequent years

An employee is entitled to a medical tax credit in respect of medical scheme contributions paid by the employee, irrespective of the employee’s age.

• Taxpayers may deduct from their tax liability a tax credit of R310 for the first two beneficiaries and R209 for each additional beneficiary.

An additional medical expenses tax credit related to medical scheme contributions for taxpayers above the age of 65 must be taken into account to calculate the monthly PAYE.

• In the case of an individual who is 65 and older, or if an individual, his or her spouse, or his or her child is a person with a disability, 33.3% of the sum of qualifying medical expenses paid and borne by the individual; and  an amount by which medical scheme contributions paid by the individual exceed 3X the medical scheme fees tax credits for the tax year; or
• Any other individual, 25% of an amount equal to the sum of qualifying medical expenses paid and borne by the individual, and an amount by which medical scheme contributions paid by the individual exceed 4X the medical scheme fees tax credits for the tax year, limited to the amount which exceeds 7.5% of taxable income (excluding retirement fund lump sums and severance benefits).

The Employment Tax Incentive Act came into effect on 1 January 2014 with the aim to encourage employers to hire young and less experienced work seekers. The incentive will come to an end on 28 February 2029.

The definition of “employee” in the ETI Act has been aligned with the definition of “employee” in the Labour Relations Act because the aim of the ETI is to assist in creating employment opportunities regulated by labour legislation.

Tax Amendment Act changed the calculation method of the ETI.  If an employee is employed for less than 160 hours in a month, then he or she is deemed to have worked for a part of a month. Thus his or her remuneration must be grossed-up by using the ratio of the hours employed to 160 hours.

An employee is a qualifying employee if: –

The amount of the employment tax incentive in respect of a qualifying employee is determined as follows: