Provisional Tax Question

[brakpanpolisie]

Hi all
So Ill be starting on a 3 month probation period at a new job soon, not full time though only on contract basis. Afterwards Ill be joining fulltime on their payroll.
I've heard that I will need to register for provisional tax, fill in an irp6 etc etc etc.

My question is, will it be necessary for this short period and the amount that I am going to be paid?

 

[Anneke]

Hallo,

Registering for provisional tax is quite easy, but to unregister is a nightmare.

Wil you be working as a sub-contractor for them for 3 months? Like you would have to invoice the company for your services.

Or are you on a 3-month provisional contract? If so even if you are a temporary employee the employer must deduct PAYE and UIF from your salary as you are still deemed an employee as per the basic employment act.

Kind regards


Sent from my iPhone using Tapatalk

 

[brakpanpolisie]

Hi @Anneke thanks for your reply!
Yes I will be subcontracting for the 3 month period, thereafter a new permanent contract will be negotiated.
So no def not a temp employee position

 

[Nemo415]

If you are currently registered on PAYE, ask payroll to send through the IRP5 to SARs... that will have all the info if your annual income,

Then at the end of the year when you do your ta return, it will show that you earn the income, and tax was not deducted for whatever reason.

the income will have the relevant reason next to it, in this case independent contractor

Source Code - Reason for non-deduction of PAYE | TaxTim SA

www.taxtim.com

Disclaimer: The above is from the occasional scenario that I have been in, and may not apply to your situation. The above does not constitute tax advice.