Blog Q&A Calculators Students Logbook Contact
Earn under R350,000?Click here to see why you still need to file to get your Tax Refund.
CLOSE
Need Help with your 2017 Tax Return?

Get your tax return DONE in 10 minutes or less with TaxTim!

Try TaxTim Now

Tax on pension gratuity - what is the amount?

Posted 13 January 2014 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
Is the gratuity from a government retirement pension taxable and if so what %

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

TaxTim TaxTim says:
13 January 2014 at 16:04

Yes it is, did you retire due to reaching the age or resign?

John says:
14 January 2014 at 13:35

I will be retiring in three years time and am trying to work out how much of my gratuity will be taxed.
Obviously my monthly annuity will be taxed.

TaxTim TaxTim says:
15 January 2014 at 10:43

In 3 years time the laws will have changed, but for now the amount is taxed as follows:

Taxable Income (R) Rate of Tax (R)
0 - 315 000 0% of taxable income
315 001 - 630 000 18% of taxable income above 315 000
630 001 - 945 000 56 700 + 27% of taxable income above 630 000
945 001 and above 141 750 + 36% of taxable income above 945 000

John says:
16 January 2014 at 17:30

Thank you for your advice.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started