In South Africa, taxable earnings generally refer to the amount of money that an individual earns from employment. This includes salary, wages, bonuses, and commissions. However, there are some exceptions to what is considered taxable earnings. For example, certain fringe benefits, such as company cars and housing allowances, may not be included in taxable earnings.
How to calculate taxable earnings in South Africa?
To calculate your taxable earnings in South Africa, you will need to take into account your total income from all sources, minus any allowable deductions. Your total income includes money earned from employment, investments, and other sources. Allowable deductions include expenses such as medical insurance and retirement contributions. Once you have your total income and deductions figured out, you can apply the appropriate tax rate to calculate your taxable earnings.
What are the tax brackets in South Africa?
The tax brackets in South Africa are determined by the number of taxable earnings. The first bracket is for earnings up to R160 000, and the tax rate is 18%. The second bracket is for earnings between R160 001 and R250 000, and the tax rate is 26%. The third bracket is for earnings between R250 001 and R550 000, and the tax rate is 31%. Lastly, earnings over R550 000 are taxed at 36%.
