Tax on pension gratuity - what is the amount?
By Marc Sevitz · Updated
Yes it is, did you retire due to reaching the age or resign?
I will be retiring in three years time and am trying to work out how much of my gratuity will be taxed.
Obviously my monthly annuity will be taxed.
Obviously my monthly annuity will be taxed.
In 3 years time the laws will have changed, but for now the amount is taxed as follows:
Taxable Income (R) Rate of Tax (R)
0 – 315 000 0% of taxable income
315 001 - 630 000 18% of taxable income above 315 000
630 001 – 945 000 56 700 + 27% of taxable income above 630 000
945 001 and above 141 750 + 36% of taxable income above 945 000
Taxable Income (R) Rate of Tax (R)
0 – 315 000 0% of taxable income
315 001 - 630 000 18% of taxable income above 315 000
630 001 – 945 000 56 700 + 27% of taxable income above 630 000
945 001 and above 141 750 + 36% of taxable income above 945 000
Thank you for your advice.