FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Do I get taxed on pension fund lump sum if i'm being retrenched?

Posted 6 April 2015

Glowgirl says:
2 April 2015 at 9:42

Im being retrenched and would like to take my pension in lump sum . Will I be taxed on it? and what other advice to you have on wrt to tax on retrenchment package. Can I get a refund on the tax when I to tax return in July?

TaxTim TaxTim says:
2 April 2015 at 16:15

Yes you will as per the Lump sum calculator. Unfortunately you will not receive an refunds as it is a full and final payment of tax. You can transfer it to a pension preservation fund and then no tax will be payable.

This entry was posted in Tax Q&A and tagged , , , . Bookmark the permalink.




Submit your tax return right here!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.