Taxation

It is important that you as a member, understand the different tax implications when benefits are paid.  Let’s take a look at a few:

Retirement Benefits

The first R500 000 payable at retirement from a pension, provident or retirement annuity fund is tax-free. 

The balance is taxed according to the following fixed scale:

R0 – R500 000 0%
R500 001 – R700 000 18% of the amount exceeding R500 000
R700 001- R1 050 000 R36 000 plus 27% of the amount exceeding R700 000
R1 050 001 and above R130 500 plus 36% of the amount exceeding R1 050 000



To get an indication of how much tax you might have to pay when you retire, try the Exit Taxation Calculator: 


Death Benefits

The death benefits paid by the UCTRF are taxed exactly the same as Retirement Benefits above.

The first R500 000 payable at death from a pension, provident or retirement annuity fund is tax-free. 

The balance is taxed according to the following fixed scale:

R0 – R500 000 0%
R500 001 – R700 000 18% of the amount exceeding R500 000
R700 001- R1 050 000 R36 000 plus 27% of the amount exceeding R700 000
R1 050 001 and above R130 500 plus 36% of the amount exceeding R1 050 000



To get an indication of how much tax your Beneficiaries might have to pay when you pass away, try the Exit Taxation Calculator: 


Withdrawal Benefits


The first R25 000 of a cash withdrawal will be tax-free with the balance taxed as follows:

 
R0 – R25 000 0%
R25 001 – R660 000 18% of the amount exceeding R25 000
R660 001- R990 000 R114 300 plus 27% of the amount exceeding R660 000
R990 001 and above R203 400 plus 36% of the amount exceeding R990 000



To get an indication of how much tax you might have to pay when you leave the UCTRF, try the Exit Taxation Calculator: 


Taxation of Contributions

    
 
 


Our Contact Details

 



Enquiries

021 650 2934

Please send all comments or questions to:
UCTRF-enquiries@uct.ac.za

Fund website: www.uctrf.co.za

LinkedIn: www.linkedin.com/in/uctrf

Twitter: @uctrf