Tax deduction on provident fund
By Nicci Courtney-Clarke · Updated
What will my payout be on the following for my provident fund when I resign. I am not retirement age yet ( 52 years old ). On resignation from the SATU provident fund you are taxed on the full employer share and interest earned on the member share. (not on the member contributions)
My member contributions amounted to R170,585. 44. My current statement shows member and Employer share:
Member share Employer share Total share
R706,779. 50 R689,136. 49 R139,5915. 99
My member contributions amounted to R170,585. 44. My current statement shows member and Employer share:
Member share Employer share Total share
R706,779. 50 R689,136. 49 R139,5915. 99
So what is the total value of the fund?
Member share R 706779.50
Employer share R 689136.49
Total fund value R 1395915.99
Employer share R 689136.49
Total fund value R 1395915.99
You will be taxed on the total less the contributions you personally made. You can make use of our Lump sum calculator to work out this amount.