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Tax on Retirement withdrawal

Posted 16 June 2016 under Tax Questions

George says:
15 June 2016 at 22:04

I want to know my retirement benefit will be taxed. I withdraw two thirds and leave one third in the fund. How much tax will I pay on the withdrawal and how much will I receive?

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TaxTimTaxTim says:
16 June 2016 at 8:56

When a pension fund is withdrawn or paid out, the fund administrator is required to obtain a tax directive from Inland Revenue to indicate at which tax rate the money should be taxed.

If this is not done, then the money along with your other normal income, will be added together in your tax return and the total will be taxed according to the tax rate in which the total amount will fall of the income tax bracket. Please see a link to the tax scales: https://pwc.taxtim.com/na/blog/individual-income-tax-tables

So get in contact with your fund and request that they obtain a directive once the money is withdrawn.

Hope you manage


George says:
16 June 2016 at 10:52

Thank you. Just one last question. What is the estimated or highest tax they can tax me on.


TaxTimTaxTim says:
16 June 2016 at 11:01

The highest tax rate is 37%.


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