Does that once off R500 000.00 tax free still apply for a person younger that 55yrs on retrenchment?

I just want to find out, is the retirement package taxed the same way as the retrenchment/severance package if the person is not yet at the retirement age but his/her employment was terminated?

Yes if he was retrenched it is the same, You can make use of our Lump sum calculator to determine what the tax on your retrenchment will be.