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Thread: Tax on pension fund

  1. #1
    New Member Nefarious777's Avatar
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    Tax on pension fund

    Good day

    Can anyone please explain to me how much tax one would have to pay on a pension fund amounting to R359 305.Thank you.

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    There shouldn't be any tax on that amount.

    0-500 000 = Nil

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    Nefarious777 (09-Jul-15)

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    New Member Nefarious777's Avatar
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    Thank you for the feedback Dellatjie.

    From the tax tables given by SARS how does one discern which table to use for calculating pension fund tax taking into account that a portion of the pension funds have been withdrawn?

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    Junior Member DanE's Avatar
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    Anything under 500k initial draw should be tax free as far as I know. Is this your initial draw or are you pulling subsequently from a policy which has matured?


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    Nefarious777 (09-Jul-15)

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    New Member Nefarious777's Avatar
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    Hi DanE

    Thank you for replying.This is an initial draw.

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    Junior Member DanE's Avatar
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    Then you should be fine. It sounds counter intuitive but I have always found that SARS call centre are very efficient with queries if you are friendly and explain fully. If in doubt ask, after all apparently they are at our service? 😄


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    Email problem Rafael's Avatar
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    It depends.

    If you are withdrawing from a company Pension fund and you under 55 then only R25 000 is tax free

    If you are over age 55, then your first R500 000 is tax free.

    Please not however than if you have ever withdrawn from a pension/provident fund or taken a retrenchment package post 2007, it affects you tax free amount.

    For example if you left a company on 2010 and withdraw R100 000 from the company pension fund
    You would only have R400 000 tax free at age 55

    R500 000 (tax free amount) - R100 000 (withdrawal post 2007) = R400 000 tax free amount at retirement
    Last edited by Dave A; 12-Jul-15 at 09:08 AM.
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    Dave A (10-Jul-15), Mike C (10-Jul-15)

  11. #8
    Email problem Rafael's Avatar
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    Apologies meant to say post 2007
    You miss 100% of the chances you never take

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Rafael View Post
    Apologies meant to say post 2007
    I've done an edit for you Rafael. Please check I did the right thing.
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