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Tax on pension gratuity - what is the amount?

Posted 13 January 2014 under Tax Questions


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Is the gratuity from a government retirement pension taxable and if so what %

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TaxTimTaxTim says:
13 January 2014 at 16:04

Yes it is, did you retire due to reaching the age or resign?


John says:
14 January 2014 at 13:35

I will be retiring in three years time and am trying to work out how much of my gratuity will be taxed.
Obviously my monthly annuity will be taxed.


TaxTimTaxTim says:
15 January 2014 at 10:43

In 3 years time the laws will have changed, but for now the amount is taxed as follows:

Taxable Income (R) Rate of Tax (R)
0 - 315 000 0% of taxable income
315 001 - 630 000 18% of taxable income above 315 000
630 001 - 945 000 56 700 + 27% of taxable income above 630 000
945 001 and above 141 750 + 36% of taxable income above 945 000


John says:
16 January 2014 at 17:30

Thank you for your advice.


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