27 July 2016 South Africa's proposal to end requirements that private companies use deemed remuneration to apply employees' tax (PAYE) on director's remuneration discussed Effective March 1, 2017 remuneration paid to directors of private companies will have the same withholding tax treatment as remuneration paid to regular employees, if proposals put forward by the Treasury are implemented. Employees' tax withholding will be due as and when the director receives the income. Private companies will therefore no longer be required to determine the amount of deemed remuneration using a specific formula and to pay monthly employees' tax on this deemed remuneration. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1287 |
