In terms of the IRP3(a), how does one do the manual calculations of the taxation that should be deducted if ''other''(X) is ticked under the directive reason, as there are calculations available for the retirement and severance benefits.
What is the reason given for "other"? i.e. what is the directive for?
Leozasays: 18 May 2016 at 13:44
TaxTimsays: 18 May 2016 at 21:45
What is the nature of the payout i.e is it a retirement fund withdrawal or lump sum paid on voluntary retrenchment or something else?
Leozasays: 19 May 2016 at 9:30
Its something else, because I know that if its a retirement your gone use the is a table that you use to calculate the taxable amount of which is 18% for 25001-660000 but right now id like to know how to calculate the taxable amount when you have ticket other on the directive reason on the second page of the IRP3(a) income tax.
TaxTimsays: 19 May 2016 at 12:28
Unfortunately we need to understand the nature of the payout in order to determine the tax that will be withheld. Perhaps check with your employer for these details.
Leozasays: 19 May 2016 at 13:16
Early retirement and resignation are the nature of the payout.
TaxTimsays: 20 May 2016 at 11:38
If it is not classified as retrenchment or severance, then it won't be taxed according to the special tax tables - it is likely that it will be added to your other income and taxed per the normal tax tables at your marginal rate of tax (i.e. same tax tables as your salary).
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