He can deduct the full amount as its below 27.5% of his annual income (which would be R 62 700). The tax deduction is capped at R 350 000 per annum.įOR EXAMPLE: If Joe earns R 228 000 during the 2022 tax year, and saves R 2 375 per month in a retirement annuity fund (well done Joe!) it means he’s saved R 28 500 for the year. If you contribute to a pension, provident or retirement annuity fund, you’ll qualify for a tax deduction up to 27.5% of your annual income, limited to no more than the actual contributions you made. If you don’t pay tax, then you can’t claim these things back.
Now that you know whether or not you have to pay tax, lets delve into the different things you can claim back for, if you fall into the bracket of people that have to pay tax. Take a look at the table below to see how much you can earn, before having to pay tax. Now that we know whether or not you fall into the category of Employee, let’s talk about how much moola you can earn before having to pay taxes! If you’re self-employed and running your own business, or working as a “freelancer” or independent contractor, then your earnings are not classified as remuneration and therefore you are not an employee. Remuneration will include: salary, fee, bonus, wage, gratuity, pension, leave encashment, emolument, voluntary award, commission, annuity, stipend, overtime, superannuation allowance, retirement allowance, lump sum benefit payment, director's remuneration, etc. fringe benefit) and whether or not for services rendered.
Remuneration is any amount of income which is paid/payable to any person whether in cash or other ways (e.g. GREAT! So, what is the meaning of remuneration, for tax purposes? Generally, they will work full time for one employer and have no other jobs. This may seem like a simple concept, but let’s make sure that we’re all on the same page as to who and what an employee is! An employee is any person (other than a company) who is paid by an employer for work performed.
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