Question:
How much tax will be payable on my pension withdrawal pay out since I have resigned from my current employer? I resigned on my first employer in 2006, I got cash pension withdrawal through forbes. Now I have resigned in June with my second employer and current pension value is R275360 with forbes as well. I intend to do cash withdrawal from my fund since I need money to start my Business. How much tax will be taxable or aplicable in my situation since I will be withdrawing for second time?
Answer:
Brian, You will be taxed per the withdrawal lump sum tax table, which applies cumulatively to all your fund withdrawals. In total, 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 rest at 36%.
