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Severance Pay Tax

Posted 10 July 2015 under Tax Q&A


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Jana says:
9 July 2015 at 19:04

Last year I was retrenched, took the package, and was told that the severance piece was tax free, as it was way below the R500k, just under R40k, got a directive.

Now looking to do my tax return, the amount shows under income (source code: 3901) adding it to my income, however as I was not taxed on it when it was paid, it appears to SARS that I didn't pay the tax then. So now it looks like SARS is asking me for the tax on that amount, as my prelim calculations is saying I must pay in close on R4000?

Am I missing something? Must I take it off or add an amount to 4115?

This entry was posted in Tax Q&A and tagged , , , . Bookmark the permalink.

TaxTim TaxTim says:
10 July 2015 at 8:22

Is there not a directive number on the IRP5 in the bottom right hand corner?


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