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Thread: Voluntary Retrenchment package - Tax implication

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    Exclamation Voluntary Retrenchment package - Tax implication

    Good Day All,

    I hope you can shed some light.

    If you are offered and accept a voluntary retrenchment package, what are the tax implications?

    Hope to hear from you soon.

    Thank you and kind regards,
    Igna

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    https://www.sars.gov.za/ClientSegmen...renchment.aspx

    In summary, there is a special tax table for your retrenchment package, where the first R500k is tax free, provided you did not own more than 5% of the shareholding in the company.

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