Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


How do rebates work?



Samwise says:
13 May 2015 at 9:55

I have started a new job and have been told my salary will be R7000 a month, on top of this, they are saying that I am going to be taxed 18% per month. I am just a bit confused. . This seems very high for such a small salary. . . And then there comes the topic of rebates. I have been told that at the end of the tax year I can claim this back? But this is all going over my head, can you please confirm that the 18% a month tax is correct (i do not have any medical aid, retirement funds etc) and then what the process is for claiming back, if I can at all?

TaxTim TaxTim says:
13 May 2015 at 13:37

Taxes are paid based on income earned and in South Africa these rates get higher as you earn more. The lowest rate in SA is 18%, however SARS only taxes income earners if they earn above R73 650 for the year. So you will in fact only be taxed on R10 350 at 18%. Unfortunately you cannot claim this back as a refund. A rebate is something entirely different. Please have a look at our article on Returns, Rebates and Refunds to get a better understanding.

Samwise says:
13 May 2015 at 13:44

Thanks for your reply. So should I be getting charged 18% tax on my monthly salary of R7000? Or is that the total I will be charged per annum? Basically, what will my take home pay be each month?

TaxTim TaxTim says:
13 May 2015 at 18:33

You can make use of our SARS income tax calculator to work out how much tax you will be paying each year/month.

This entry was posted in Tax Q&A and tagged , , , , , . Bookmark the permalink.




Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.