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Tax on Cash Lump Sum

Posted 19 November 2015 under Tax Questions



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Nao says:
19 November 2015 at 10:54

I have resigned and Agreed with my current employer to get paid my 3 month notice pay since I am starting my own business. How much tax is applied to a cash lump sum (3month notice 220k leave pay 70k), can I apply for a tax directive.

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TaxTimTaxTim says:
19 November 2015 at 11:04

Your employer can apply for a directive if the extra money was as a result of you being retrenched. If it is a resignation then you will be taxed according to the normal tax tables.


Nao says:
19 November 2015 at 11:23

thanks for the prompt response, its a normal resignation unfortunately. can you also advise war rate would apply


TaxTimTaxTim says:
19 November 2015 at 11:42

It depends on the rest of you income, make use of our SARS income tax calculator to see what the tax will be - enter the before extra amount and after extra amount and the tax will be the difference.


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