FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


What is tax on a pension fund withdrawal?

Posted 25 January 2013

I resigned from my previous employer on the 28th Fevruary 2012 and got paid a pension lump sum in April 2012. The lump sum was taxed at 18% (witheld by the pension administrator). I got employed in August 2012 and I am on a new pension fund and paying PAYE normally. For my 2013 tax return, will SARS refund me the tax the deducted for me cashing out the pension lump sum?

TaxTim TaxTim says:
27 January 2013 at 0:27

SARS will only be able to refund you the portion of tax that you paid once they have done a full calculation on what your overall tax liability should be.

Pension tables are also taxed at a different rate, depending on the amount and what the circumstances were when you withdrew.

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




Submit your tax return right here!

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 →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.