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 retrenchment and pension

Posted 24 February 2016 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 →
Blamey says:
24 February 2016 at 8:14

I have worked for a company for 10 years. I have never been retrenched before and my company pension fund is worth around R780K. I have been retrenched due to my division being closed. I have been offered a retrenchment package of R180K cash. How will this R180K be taxed and how will my pension be taxed if I withdraw it or if I move it?

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

TaxTim TaxTim says:
24 February 2016 at 10:19

Your pension will be taxed according to the Lump sum calculator for which your retrenchment package must be added too to work out the PAYE.

Blamey says:
24 February 2016 at 10:53

My calculation comes out at a tax payment of R 98 100

And then I received the pension and the retrenchment in cash. Is this correct?

TaxTim TaxTim says:
24 February 2016 at 13:06

We get an amount of R102 600 - however this should be the amount that you will pay over to SARS roughly. The company may take some other factors into account.

If you move the pension amount to a preservation fund then there will be no tax.


Get SARS Tax Deadlines in your Inbox
 

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