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Sam says: 19 May 2015 at 16:07 I have retired at the end of December 2007. At that time the tax free amount was R300 000. Since that time the tax free amount was increased to R500 000. I have a retirement annuity which is due to pay out soon. The 1/3 lump sum which I intend to take is R46 000, Will tax be deducted from the lump sum amount or will it be tax free? |
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TaxTim says: 20 May 2015 at 10:39 What is the total value of the fund at the moment? The first R500 000 is available for everyone, but is used collectively so not per withdrawal. |
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Sam says: 22 May 2015 at 9:45 The total fund value of the retirement annuity is R149 800. Am I entitled to a further R200 000 tax free when my retirement annuity pays out as I only received R300 000 tax free previously at retirement? |
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TaxTim says: 22 May 2015 at 10:06 What will happen is SARS will take all your old withdrawals and lumpsums and deduct that from the current one and then look at how much of an exemption was given and calculate the remaining allowed exemption amount. Given that you withdrew only R300 000 it would seem that you should still be able to not be taxed on the R46 000 you wish to withdraw. |
