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 R550 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 – R550 000 | 0% |
| R550 001 – R770 000 | 18% of the amount exceeding R550 000 |
| R770 001- R1 155 000 | R39 600 plus 27% of the amount exceeding R770 000 |
| R1 155 001 and above | R143 550 plus 36% of the amount exceeding R1 155 000 |
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 R550 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 – R550 000 | 0% |
| R550 001 – R770 000 | 18% of the amount exceeding R550 000 |
| R770 001- R1 155 000 | R39 600 plus 27% of the amount exceeding R770 000 |
| R1 155 001 and above | R143 550 plus 36% of the amount exceeding R1 155 000 |
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 R27 500 of a cash withdrawal will be tax-free with the balance taxed as follows:
| R0 – R27 500 | 0% |
| R27 501 – R726 000 | 18% of the amount exceeding R27 500 |
| R726 001- R1 089 000 | R125 730 plus 27% of the amount exceeding R726 000 |
| R1 089 001 and above | R223 740 plus 36% of the amount exceeding R1 089 000 |
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
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