Tax Directive

What is a Tax Directive?

A tax directive is an instruction from SARS to withhold PAYE at a different rate from normal, often for lump sums or commission earners.

Think of it like this…

It’s a custom PAYE setting for a specific situation.

Why does it matter?

  • Common for retirement payouts, commission, or severance
  • Overrides the default tax tables
  • Must be applied exactly as stated in the directive

Best practice

Keep copies of directives and apply them only for the period specified.

Back to Terms