Tax Implications of Changing Jobs in South Africa

Two employers in one tax year

SARS sees your total income for the year of assessment. A mid-year move can push you into a higher bracket on combined income even if each employer withheld correctly in isolation.

You may owe on assessment or receive a refund — keep all IRP5 certificates and reconcile in July.

Lump sums and leave payouts

Retirement fund withdrawals and some severance amounts use special tax tables — do not assume the same rate as salary. Request a tax directive where required before payout.

Accrued leave paid out is taxable as remuneration in most cases.

Fringe benefits at the new employer

Company car, medical aid subsidy, housing and bursaries change your taxable package. Compare total cost to company (TCTC), not headline salary.

Update your budget tax line — MyGenie derives marginal rate from the engine tables when you model household income.

This article is illustrative and educational. It is not financial, tax, or legal advice. Figures are examples only — model your own situation in MyGenie or speak to a licensed financial adviser.