Question:
I am resigning and would like to know what the percentage tax is that I will pay on my retirement fund? For example if my pension is R100 000, how much tax will be deducted?
Answer:
Cindy, Assuming you have not previously withdrawn from a retirement fund, you will be taxed as follows: 0% on the first R22 500; 18% on the balance to R600 000; 27% on the balance to R900 000; and 36% on all amounts above R900 000. If you have previously withdrawn, this will be considered (ie you cannot get the same allowance twice). On R100 000 you would pay tax of R13 950.
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.
