Remuneration paid to a member of a close corporation is not subject to employee’s tax (PAYE) in South Africa. Members of close corporations are considered to be owners of the business rather than employees, and as such, the remuneration they receive is not classified as employee income. Instead, members of close corporations are typically taxed on the profits or income they receive from the close corporation as part of their individual tax obligations. It is important for members of close corporations to consult with tax professionals or the South African Revenue Service (SARS) to ensure compliance with tax laws and regulations related to their remuneration and tax obligations.
The definition of employee includes a director of a private company.
• Any remuneration paid or payable to a director of a private company or a member of a close corporation is therefore subject to the deduction of Employees’ Tax from 1 March 2002.
The definition of a company includes a close corporation and therefore, the same rules for the deduction of employees’ tax from the remuneration of directors of private companies apply to members of close corporations. This definition includes a person who, in respect of a close corporation, holds any office or performs any functions similar to the functions of a director of a company other than a close corporation. Any employment which cannot be classified under Standard or Deemed Standard employment. • Workers are employed on a daily basis and are paid daily, for example:  Casual commissions paid, such as spotter‘s fees;  Casual payments to casual workers for irregular services rendered or occasional services;  Fees paid to part-time lecturers;  Honoraria paid to office bearers of organisations, clubs, etc