What is tax on a pension fund withdrawal?

By Marc Sevitz · Updated 25 January 2013

I resigned from my previous employer on the 28th Fevruary 2012 and got paid a pension lump sum in April 2012. The lump sum was taxed at 18% (witheld by the pension administrator). I got employed in August 2012 and I am on a new pension fund and paying PAYE normally. For my 2013 tax return, will SARS refund me the tax the deducted for me cashing out the pension lump sum?

TaxTim Marc said:
27 January 2013 at 0:27

SARS will only be able to refund you the portion of tax that you paid once they have done a full calculation on what your overall tax liability should be.

Pension tables are also taxed at a different rate, depending on the amount and what the circumstances were when you withdrew.