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Tax on Bonuses and Medical Aid and perks

Posted 18 September 2013

1. How is bonus taxed?
2. Is my portion of Medical Aid taxed? Is it a perk?

TaxTim TaxTim says:
18 September 2013 at 14:43

The employer portion of the medical aid paid is a perk and is fully taxable in your hands. You are still entitled to the medical aid tax credit of R242 per month however.

A bonus is taxed in a few ways, the most common being added to your monthly salary and then taxed according to the tables which often results in a refund at year end.

Alternatively your employer will take your marginal rate of tax and multiply that by the bonus in order to work out the taxes owing.

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