|
Entire amount or cession value of policy |
½ of total value (if annuity less than R1 800.00 full benefit). [Section 1 "pension Fund" (c) (ii) (dd).]
Balance comp annuity taxed i.t.o. tax tables |
½ of total value (if annuity less than R1 800.00 full benefit).
[Section 1 "RA fund " (b) (ii).] Balance comp. Annuity Taxed i.t.o. tax tables |
Entire cash amount or special cession value. |
|
Z = C + E – D
WHERE:
Z = TAX FREE AMOUNT
C = AMOUNT TAXED AT
R 0 to R300 000/ 0% Tax
R300 001 to R600 000/ 18% Tax
R600 001 to R900 000/ 27% Tax
R900 001 plus / 36% Tax
|
E = PREVIOUSLY DISALLOWED OWN CONTRIBUTIONS
D = TOTAL TAX FREE FROM OTHER APPROVED FUNDS
[2nd Schedule] |
Z = C + E – D
WHERE: Z = TAX FREE AMOUNT
C = AMOUNT TAXED AT
R 0 to R300 000/ 0% Tax
R300 001 to R600 000/ 18% Tax
R600 001 to R900 000/ 27% Tax
R900 001 plus / 36% Tax
| |
E = PREVIOUSLY DISALLOWED OWN CONTRIBUTIONS
D = TOTAL TAX FREE FROM OTHER APPROVED FUNDS
[2nd Schedule] |
Z = C + E – D
WHERE:
Z = TAX FREE AMOUNT
C = AMOUNT TAXED AT:
R 0 to R300 000/ 0% Tax
R300 001 to R600 000/ 18% Tax
R600 001 to R900 000/ 27% Tax
R900 001 plus / 36% Tax
| |
E = PREVIOUSLY DISALLOWED OWN CONTRIBUTIONS
D = TOTAL TAX FREE FROM OTHER APPROVED FUNDS
[2nd Schedule] |
R30 000 less tax free lump sums previously received. Provided that :
- recipient at least 55 ; or
- termination due to superannuation, ill health or other infirmity; or
- termination due to employer ceasing business or redundancy as a result of employer’s general reduction in personnel and, in the case of a company, the employee was not a director and shareholder with more than 5 % of share capital
[Section 10 (1) (x)] |
