Question:
Hi, how long does a provident fund take to pay out, and will I get taxed if my Total Fund Credit as on 31/03/2013 adds up to R33 990.34?
Answer:
Darryl, Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 14 to 21 business days for the funds to be paid out. If it takes longer, you should follow up with the administrator to see what is holding up the process. If the administrator does not give you any joy, you should follow up with your previous HR department to ensure they follow up on this matter. Assuming you have not previously withdrawn from a retirement fund, you will be taxed as follows; the first R22 500 is not taxed, the balance to R33 990 is taxed at 18%. This means that on R33 990 you should get out R31 922.
