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Rob says: 4 January 2016 at 21:03 I am withdrawing R660000-00 from my Pension Preservation fund. I understand that R25000 is tax free and I will be taxed 18% on the balance. However I was retrenched in 2012 and received a severance package of which the first R315000-00 was tax free as far as I remember. How will this tax exemption of 2012 affect my lump sum pay out taxation rate for 2016? Has the 18% tax rate been used up partially? |
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TaxTim says: 5 January 2016 at 8:12 What will happen is that the two withdrawals will be added together and then the tax worked out on that total and then the taxes already paid taken off. You will then be subject to tax on the rest. |
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