Taxation

On WITHDRAWAL, the benefit will be taxed. Tax is calculated according to the following table which is applicable from 1 March 2014:

TAXABLE AMOUNT RATE OF TAX
R0 – R25 000 0%
R25 001 – R660 000 18% of the amount above R25 000
R660 001 – R990 000 R114 300 + 27% of the amount above R660 000
R990 001  and above R203 400 + 36% of the amount above R990 000

This table applies to the combined withdrawal benefits that become available to you on or after 1 March 2009.

 

On RETRENCHMENT, RETIREMENT OR DEATH the benefit will be taxed. Tax is calculated according to the following table which is applicable from 1 March 2014:

TAXABLE AMOUNT RATE OF TAX
R0 – R500 000 0%
R500 001 – R700 000 18% of the amount over R500 000
R700 001 – R1 050 000 R36 000 + 27% of the amount over R700 000
R1 050 001  and above R130 500 + 36% of the amount over R1 050 000