Page 8 - P6 Slide Taxation - Lecture Day 6 - Retirement Benefits Lump Sums
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• TABLE A: Retirement lump sum benefits from a retirement fund
& Severance benefits
TAXABLE INCOME FROM RATE OF TAX
BENEFITS
≤ R500 000 0% of taxable income
> R500 000 & ≤ R700 000 18% of taxable income exceeding R500 000
> R700 000 & ≤ R1 050 000 R 36 000 + 27% that exceeds R700 000
> R1 050 000 R130 500 + 36% that exceeds R1 050 000
• TABLE B: Retirement lump sum withdrawal benefits
TAXABLE INCOME FROM RATE OF TAX
BENEFITS
≤ R25 000 0% of taxable income
> R25 000 & ≤ R660 000 18% of taxable income exceeding R25 000
> R660 000 & ≤ R990 000 R114 300 + 27% that exceeds R660 000
> R990 000 R203 400 + 36% that exceeds R990 000
