Page 7 - P6 Slide Taxation - Lecture Day 6 - Retirement Benefits Lump Sums

EXAM TECHNIQUE

Because different lump sums are taxed in terms of different tax tables it is

necessary to use different columns in order to categorise the different lump

sums received:
Column 1 Column 2 Column 3
“Normal” income
LS benefit from Retirement LS- & Retirement LS

retirement fund & withdrawal Benefit from

Severance benefit benefit employer ≠
from employer (not from severance benefit

employer) e.g. Accumulated

leave

Gross Income

Less: Exemptions

= Income

See rest of

framework Cht 10

Tax in terms of Tax in terms of Tax in terms of

“Table A” “Table B” “Table C”