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ACCOUNTING □ TAXATION □ BUSINESS CONSULTING
TEL : 083 469 6416 FAX: 086 692 4048 INFO@SKMC.CO.ZA
37 ANGIERS STREET SAUVIGNON BRACKENFELL, 7560
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For all your personal short-term insurance needs, visit Multi-Prof Insurance Brokers |
 NEED EXPOSURE? To advertise here, please contact us by e-mail: info@skmc.co.za |
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SKMC Salary Structuring Advice
There are a lot of different ways your salary can be structured to pay the minimum amount of tax that is legally allowable. The reduction of tax liabilities can be done by means of salary sacrifice. Income substitution (also known as salary sacrifice) is the process whereby you grant a benefit to your employee and the cost of such benefit is recouped from the employee's salary, resulting in a reduced taxable salary income. It is recommended that the above is done by a professional, because SARS may attack the new structures if they suspect the main purpose of restructuring is reducing of employee's tax. The two most common restructuring benefits is granting a travel allowance, and employers paying the tax free portion of employee's medical aid contributions.
DETERMINING THE TRAVEL ALLOWANCE: Most employers make the mistake of allocating a travel allowance by using a % of basic salary method. This usually results in either the employee having to pay additional tax when assessed, or employees not being able to claim their full travel expenses because the travel allowance granted were too small. There are some factors that should be considered when calculating the value of your travel allowance:
We can restructure your salary so that it is the most tax efficient! All you have to do, is to complete a simple form and we will email you the advice. |
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