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As a sub-consultant should the company I do work for deduct tax?



Yvonne says:
29 September 2015 at 13:17

What is the difference between a sole proprietor and sub-consultant. I am a sub-consultant and work on an hourly rate. My income is not the same every month. I use the companies' offices from time to time. I have been a sub-consultant since August 2015. The company deducts tax from my monthly income and will provide me with an IRP5. My question is should they deduct tax?

TaxTim TaxTim says:
29 September 2015 at 18:57

Generally, if your income is derived 80% or more from one client and you are under their supervision and control, you could be perceived by SARS to be an "employee" and therefore should have PAYE deducted.

If however you are an "independent contractor" with multiple clients and sources of income, then you should be registered as a provisional taxpayer and be responsible for your own tax.

Yvonne says:
30 September 2015 at 10:11

Thank you Tim, appreciate your help

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