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.
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.
There shouldn't be any tax on that amount.
0-500 000 = Nil
Nefarious777 (09-Jul-15)
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which table to use for calculating pension fund tax taking into account that a portion of the pension funds have been withdrawn?
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)
Hi DanE
Thank you for replying.This is an initial draw.
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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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Please not however than if you have ever withdrawn from a pension/provident fund or taken a retrenchment package post 2007, it affects you tax free amount.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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Apologies meant to say post 2007
You miss 100% of the chances you never take
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Rafael (13-Jul-15)
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