Lump sum benefits are taxed on the following scale:
| Tax Rate | Withdrawal Lump Sum | Retirement Lump Sum |
|---|---|---|
| 0% | R0 to R25,000 | R0 to R500,000 |
| 18% | R25,000 to R660,000 | R500,001 to R700,000 |
| 27% | R660,001 to R990,000 | R700,001 to R1,050,000 |
| 36% | More than R990,000 | More than R1,050,000 |
Source: South African Revenue Service
Annuity payments are taxed as income according to the personal income tax tables.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
