(1) Is this 25 % on ANY amount/remuneration to be paid to the freelance diver ? Or does it also apply as from a certain amount like in the case of eg. Monthly Deduction Tables for normal employees ? (2) Does the Director pay Employees' Tax as per SARS
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
The 25% is to be applied to the balance of remuneration, as was indicated. For example, if that amount is R10, then the amount to be withheld is R2,50. So it applies from the first Rand of remuneration as it is unlikely that any of the paragraph 2(4) deductions will apply.
We dont verify the correctness of calculations. The amount to be withheld, on the assumption that paragraph 11C of the Fourth Schedule to the Income Tax Act doesn’t apply in this instance, for the 2017 year of assessment, will be (((R25 000 * 12) minus R293 600) times 31%) plus R61 269. This is then reduced by the rebates, primary of R13 500 and medical. The result is divided by 12 to arrive at the monthly employee’s tax. The amount provided in the monthly deduction tables should be the same, but will not take the medical rebates into account.