Page 10 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 10
• What is meant by the cumulative application?
→ If total taxable lump-sums in lifetime > R1 050 000 a any new lump-
sum will be taxed @ 36%.
→ A taxpayer could only qualify for the 'R25 000' and 'R500 000'
exemption on the tax tables once.
• Calculation of tax on a retirement lump sum benefit?
= NB: Two steps:
1. Calculate tax on total of :
(Current retirement lump sum benefit + previous lump sum
benefits/ retirement lump sum withdrawal benefits / severance
benefits) by applying “Table A”
Less
2. “Hypothetical tax” already paid on previous lump-sums.
NB: Hypothetical tax based on most recent event (in this case
“Table A”)
