FAQ: Can a taxpayer/pensioner choose to be excluded from the use of this tax rate?

Yes, the taxpayer/pensioner may choose not to use this tax rate. In this instance, you are required to inform your fund administrator in writing. Your fund administrator will then use the nominal tax rates to calculate the PAYE to be deducted from your income. Remember, the tax rate under this new legislation is calculated and valid for one tax year. This means you may opt to use the tax rate in one year and choose to opt out the following year. You are not obligated to use the tax rate generated by SARS under Para2(2B) of the 4th Schedule.

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