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When calculating the tax portion on a lump sum payment isn't the first R500,000 tax free



When calculating the tax portion on a lump sum payment isn't the first R500,000 tax free which means the tax calculation should only be done on the remaining portion. With a lump sum of R3,000,000 the taxable portion is R2,500,000. This means the tax will be 36% of the amount exceeding R1,050,000 + R130,500 which is 36% times (R2 500 000 - R1,050,000) plus R130,500 = R 652,500

TaxTim TaxTim says:
30 November 2014 at 20:04

The tables take the exempt portions into account so you would need to use the amounts in there. You can make use of our Lump sum calculator in order to see what your payout will be.

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