Kindly provide an example of a 1st provisional tax COVID-19 deferment calculation for an individual with a PAYE payment.
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The PAYE paid should be deducted from the tax calculated on the taxable income to determine the provisional tax payable amount.
For example:
Taxable income 500 000
Tax on taxable income 110 235
Less: PAYE paid 95 000
Provisional tax payable 15 235
1st Provisional tax period 15% 2285.25