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Thread: What percentage tax will i pay?

  1. #1
    New Member
    Join Date
    Jul 2017
    south africa
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    What percentage tax will i pay?

    My husband passed away earlier this year.His pension was 4.1mil .i had an option of either buying an.annuity for 3.6mil and taking out the 550 000 tax free or paying the 1.1 mil tax and taking the 2mil950thousand lumpsum cash.

    I paid the tax and took the lumpsum of 2mil950thousand and fixed it in a fixed deposit that pays me out monthly

    My sister lives overseas and i thot maybe one day i might want to relocate..and with an annuity i would not be able to take the money with.

    Bit now ive.been reading that i will be very heavely taxed by sars on the income from the.fixed deposit.Im so worried .Please can someone be able to tell me what percentage sars might tax me.Im 38yrs old and ive been a.housewife for the past 17yrs.this will be my only income.i have no children or dependants.

  2. #2
    New Member
    Join Date
    Jun 2017
    Cape Town
    Thanked 1 Time in 1 Post

    Your tax rate is based on your total taxable income. South Africa uses a progressive tax system. Meaning that the tax rate increases as your taxable income increases.

    For the 2018 tax year (01 March 2017 to 28 Feb 2018, If your total taxable income is less than R75 750, then you will not pay any income tax. The first R23 800 of interest income is also exempt from income tax.

    I would suggest that you still submit a tax return.

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