Opaido · Glossary · Topic
Tax directives
SARS directives that override the standard PAYE tables - lump sum, fixed percentage, director and PSP rates.
Fixed-percentage directive (F) A fixed-percentage directive is a SARS instruction to withhold PAYE at a flat percentage of pay instead of using the standard tax tables, marked with indicator F.Lump-sum directive (L) A lump-sum directive is a SARS instruction fixing the tax on a once-off payment such as severance or a retirement fund withdrawal, marked with indicator L.Director tax directive A director tax directive sets how PAYE is withheld from a company director's remuneration, using a percentage, the PAYE tables or a temporary basis.Foreign income exemption The foreign income exemption can remove South African PAYE from qualifying foreign-employment income earned by a tax resident working abroad, up to a yearly cap.Labour broker IRP30 exemption An IRP30 is the exemption certificate that lets a labour broker be paid without PAYE being withheld; without it, the client must deduct PAYE.Non-executive director directive A non-executive director (NED) directive governs the tax treatment of a non-executive director's fees, which differ from an executive director's PAYE and UIF.PSP tax rates PSP tax rates are the fixed PAYE rates applied to a personal service provider's income - 45% where the PSP is a trust, 27% or 28% where it is a company.Tax directive A tax directive is a SARS instruction telling an employer or fund exactly how much tax to withhold on a specific lump sum or irregular payment, overriding the standard PAYE tables.
