How a 13th cheque is taxed in South Africa. Why there is no special bonus tax rate and how to reduce the tax you pay.

How a 13th Cheque is Taxed

A 13th cheque is simply an extra month of salary. It is added to your income in the month it is paid and taxed at your marginal rate. Many people are surprised by how much tax comes off.

Reducing the Tax

You can ask your employer to direct your 13th cheque into your retirement annuity, making it tax-deductible. Use our bonus calculator to see what you will keep.

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