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Do I get taxed on pension fund lump sum if i'm being retrenched?

Posted 6 April 2015 under Tax Q&A


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Glowgirl says:
2 April 2015 at 9:42

Im being retrenched and would like to take my pension in lump sum . Will I be taxed on it? and what other advice to you have on wrt to tax on retrenchment package. Can I get a refund on the tax when I to tax return in July?

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TaxTim TaxTim says:
2 April 2015 at 16:15

Yes you will as per the Lump sum calculator. Unfortunately you will not receive an refunds as it is a full and final payment of tax. You can transfer it to a pension preservation fund and then no tax will be payable.


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