Employee's Tax & Site | South Africa Tax Guide

Standard income tax on Employees (site)

Site is a procedure through which the normal tax in respect of the first segment of an Employee's remuneration (R60 000 in all cases) is finally determined by the  Employer and deducted under the PAYE system. Site constitutes either a final or minimum liability, and is thus not refundable, except in certain instances. The most important exclusions from Site systems are:

• Director's remuneration
• Self-employed practitioners
• Remuneration that may be set off against any assessed loss

All taxpayers who receive remuneration as defined will thus have an element of Site in their tax deductions but only amounts which are PAYE in excess of the Site liability will be refundable.

From an administrative point of view, the Site liability is only calculated at the end of a tax period, but on a monthly basis, tax deductions are made in terms of the PAYE tables.

PAYE

Any employee's remuneration which is not 'net remuneration' as defined or exceeds Site limits (R60 000) is subject to monthly deductions according to the PAYE tables.

• 60% of any Travel allowance
• Payment made to directors of private companies (including members of close corporations) in respect of services rendered are subject to PAYE.
• PAYE should be withheld from remuneration paid to labour brokers unless an exemption certificate is obtained.
• Annuities from Annuity Funds are subject to PAYE and Site.