Fourth schedule

Question 1

Remuneration definition

Answer 1

Question 2

Amounts not included in Remuneration

Answer 2

Question 3

Calculation of employees tax

Answer 3

Employees’ tax is calculated on the balance of remuneration. Paragraph 2(4) of the Fourth Schedule
sets out the deductions allowable from remuneration to get to the balance of remuneration as follows:
Remuneration (as defined in paragraph 1 of the Fourth Schedule)
Less: Section 11F pension, provident and retirement annuity fund contributions
Remuneration before paragraph 2(4)(f)
Less: Donations made by employer on behalf of employee where a section 18A receipt has been
issued, limited to 5% of remuneration before paragraph 2(4)(f)
Balance of Remuneration

Question 4

what happens after calculation of Balance of Remuneration?

Answer 4

Question 5

Example of Calculation of employees Tax

Answer 5

Question 6

Calculation of employees tax on an annual amount remember the displacement method of calculating volume of stone ?

Answer 6

Annual payment formula:
S = T1 – T2
Where:
S = Employees’ tax on annual amount
T1 = Employees’ tax on annual salary + annual amount
T2 = Employees’ tax on annual salary (excluding annual amount)

Question 7

Example of above

Answer 7