I would like to be guided on how to treat the sitting allowances of the Board Members for employees tax purposes. I need to know how much roughly should be deducted on the company’s board members allowances. The lowest paid one gets R5000 a month and the
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
We don’t have enough information to understand what guidance you require. We accept that the individuals (board members) concerned are not in full time employment of the company and are not rendering the services in the course of any trade carried on by him or her independently of the company. The current view of SARS is that the percentage to be withheld is 25% - see the SARS guide to employers.