A director tax directive governs the PAYE on a company director's pay, which can be irregular and hard to predict. It lets SARS set a consistent withholding basis for the director's remuneration.
What it means
Directors are often paid variably - drawings during the year, a final figure determined later - so the standard monthly calculation can misfire. A directive sets how to withhold: a fixed percentage, the normal PAYE tables, or a temporary basis until the director's actual remuneration is known. The chosen basis is applied to the director's pay for the period it covers.
Where it fits in
This treatment ties to the director nature-of-person classification and sits alongside the standard fixed-percentage and lump-sum directives. It differs from the non-executive director treatment, which has its own rules around PAYE and UIF.
Key rules
- Sets the PAYE basis for a company director's remuneration.
- Options include fixed percentage, PAYE tables, or a temporary basis.
- Linked to the director nature-of-person classification.
- Distinct from the non-executive director directive treatment.
