Saving You Money



  • Effective Payroll Structuring

  • Highly Confidential Payroll Outsourcing

  • Employee Payroll Tax Submissions

  • Leave Management

  • IRP5 Preparation and Submission

  • Contractor Payrolls

  • Payroll Advice on How to Reduce Your CTC Payroll and Increase Employee Net Salaries


Here are some important things to remember:


  • There is nothing wrong with tax structuring of an employee's salary or, as it is know as, salary sacrifice. South African income tax case law confirms that it is fine to structure an employee's remuneration to pay as little as possible tax

  • Structuring an employee's package can also not be subject to the anti-avoidance provisions of section 103(1) of the Income Tax Act. Case law has confirmed that where the primary purpose is bettering employees' remuneration after tax, the primary purpose can not be tax avoidance or postponement

  • You can still achieve a good PAYE outcome by careful planning. However, this is something that you can only get right where your remuneration policy (if you do not have one you should get one for tax and other reasons), employment agreements, payment advices and other documentation is not correct. Getting this right is not such a big deal if you approach this correctly

  • Adopting a cost to company approach to salary structuring is a good way of ensuring that you legally structure employee packages. However, tax cases have been lost because non-professionals tried their hands at implementing this. This is simply something that your payroll company or most accountants or consultancies can not get right from a tax perspective. Give us your thoughts on this statement of fact under Your Tax Questions.


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