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Taxation 


It is important that you as a member, understand the different tax implications when benefits are paid.  Let’s take a look at a few:

Retirement Benefits

The first R500 000 payable at retirement from a pension, provident or retirement annuity fund is tax-free.  The balance is taxed according to the following fixed scale:

R0 – R500 0000%
R500 001 – R700 00018% of the amount exceeding R500 000
R700 001- R1 050 000R36 000 plus 27% of the amount exceeding R700 000
R1 050 001 and aboveR130 500 plus 36% of the amount exceeding R1 050 000
 
Death Benefits
 
The death benefits paid by the UCTRF are taxed exactly the same as retirement benefits above.
The first R500 000 payable at death from a pension, provident or retirement annuity fund is tax-free.  The balance is taxed according to the following fixed scale:

R0 – R500 0000%
R500 001 – R700 00018% of the amount exceeding R500 000
R700 001- R1 050 000R36 000 plus 27% of the amount exceeding R700 000
R1 050 001 and aboveR130 500 plus 36% of the amount exceeding R1 050 000

Withdrawal Benefits
 
The first R25 000 of a cash withdrawal will be tax-free with the balance taxed as follows:
 
R0 – R25 0000%
R25 001 – R660 00018% of the amount exceeding R25 000
R660 001- R990 000R114 300 plus 27% of the amount exceeding R660 000
R990 001 and aboveR203 400 plus 36% of the amount exceeding R990 000

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Taxation of Contributions