Taxation of Benefits
A benefit payable from your Savings Pot on resignation or dismissal is taxed at your marginal rate.
A benefit payable from your Vested Pot is taxed according to the following fixed scale:
|
Lump sum Amount |
Rate of Taxation |
|
R0 - R27 500 |
0% of taxable income |
|
R27 501 - R726 000 |
18% of taxable income above R27 500 |
|
R726 001 - R1 089 000 |
R125 730 + 27% of taxable income above R726 000 |
|
R1089 001 + |
R223 740 + 36% of taxable income above R1 089 000 |
This applies to the aggregate of resignation or dismissal lump sums received over the member’s lifetime after 1 March 2009, as well as tax-free portions for amounts paid out after 1 March 2009 in respect of divorces or maintenance orders, which will reduce the tax-free portion available. This means that you cannot get R27 500 from this Fund and R27 500 from the next fund you join. Both benefits will be added together and only the first R27 500 will be tax-free. The balance will be taxed according to the above scale.
Any tax-free amounts paid to you will be deducted from your tax-free amount at retirement.
Retrenchment or Redundancy Benefit
A lump sum benefit payable on retrenchment from your Savings Pot is taxed at your marginal rate.
A lump sum benefit payable on retrenchment from your Vested Pot is taxed according to the following fixed scale:
|
Lump sum Amount |
Rate of Taxation |
|
R0 - R550 000 |
0% of taxable income |
|
R550 001 - R770 000 |
18% of taxable income above R550 000 |
|
R770 001 - R1 1155 000 |
R39 600 plus 27% of taxable income above R770 000 |
|
R1 155 001 and above |
R143 550 plus 36% of taxable income above R1 155 000 |
Any withdrawal or retrenchment benefit previously received tax-free (including any tax-free amount received from your Employer as a severance package), as well as tax-free portions for amounts paid out after 1 March 2009 in respect of divorces or maintenance orders, will reduce the tax-free portion available.
Any tax-free amounts paid to you will be deducted from your tax-free amount at retirement.
Retirement Benefit
Any portion of your benefit that you choose to take in cash will be taxed as follows:
|
Lump sum Amount |
Rate of Taxation |
|
R0 - R550 000 |
0% of taxable income |
|
R550 001 - R770 000 |
18% of taxable income above R550 000 |
|
R770 001 - R1 1155 000 |
R39 600 plus 27% of taxable income above R770 000 |
|
R1 155 001 and above |
R143 550 plus 36% of taxable income above R1 155 000 |
Any benefit previously received tax-free will be deducted from the tax-free amount.
Any portion of your benefit that you choose to take in cash will be taxed as follows:
|
Lump sum Amount |
Rate of Taxation |
|
R0 - R550 000 |
0% of taxable income |
|
R550 001 - R770 000 |
18% of taxable income above R550 000 |
|
R770 001 - R1 1155 000 |
R39 600 plus 27% of taxable income above R770 000 |
|
R1 155 001 and above |
R143 550 plus 36% of taxable income above R1 155 000 |
Any benefit previously received tax-free will be deducted from the tax-free amount.
Newsletter Out Now!
The fund wins prestigious industry award, again!
Two Pots
Understand what risks the new system poses.
.png)
How To Claim
How to claim from your Savings Pot in EMERGENCIES ONLY.
Voting Poll
E-mail: isasa@oldmutual.co.za
Tel: 0860 466 466
WhatsApp Service: 0860 933 333
Need help on the Secure Member Portal?
0860 60 65 00 or
Email: Help-Secure@oldmutual.com
Leaving the Fund? Member quotations: 0860 455 455 or
Email: isasa@oldmutual.co.za
Financial Advice and need help understanding benefits: 0860 388 873 or
Email: Membersupportservices@oldmutual.com
Pensioner Support
Pencare: Tel: 0860 40 60 90 or
Email: pencarehelpdesk@oldmutual.com