In order to encourage donations to the Solidarity fund by employees through employers, the maximum monthly deduction of 5% has been increased. An additional limit of up to a maximum of 33, 3% for three months or 16, 66% for six months depending on the employee’s circumstances, is available. This amendment is effective from 1 April 2020 until 30 September 2020.
A maximum donation to be allowed as a deduction by the employer when calculating the monthly PAYE is a percentage of the employee’s remuneration after deducting allowable retirement fund and retirement annuity fund contributions over specific months:
This article first appeared on sars.gov.za
Webinar Commentary
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