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What is tax on a pension fund withdrawal?

Posted 25 January 2013 under Tax Q&A


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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?

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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.


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