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Is the pension fund exempt or amounts payable from the pension fund to the taxpayer

Posted 12 December 2015 under Tax Q&A


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Lex says:
10 December 2015 at 17:53

Receipts and accruals of a pension fund are exempt. Does this entail that the fund itself is exempt or amounts payable from the fund to the taxpayer upon retirement.

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TaxTim TaxTim says:
12 December 2015 at 16:43

The amounts payable to the taxpayer on resignation from a pension fund are not exempt from tax.
It consists of two parts - lumpsum and annuity income (i.e. pension).

Please see our Lump sum calculator to work out tax payable on the lumpsum benefit on retirement from the pension fund. The monthly annuity income you receive (i.e. monthly pension) is taxed per the normal tax tables.


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