How much can I withdraw from a PF without any tax implication?


Question:

What is the amount that you arer allowed to withdrawal from the PF without any tax implication and if u withdraw all your cash before rertirement age and then what is the tax implication Thank You

Answer:

Surend, You are taxed per the withdrawal lump sum tax table. The first R25 000 is not taxed, the balance to R660 000 is taxed at 18%, the balance to R990 000 at 27% and the remainder at 36%. This table is applied to the aggregate of your retirement fund withdrawals, ie you only receive the tax-free amount of R25 000 once.

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.


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