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


Retirement Benefits - Click to view

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

 

Click to view the death benefits

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

Withdrawal Benefits - Click to view

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

Taxation of Contributions

From 1 March 2016, contributions to retirement funds are taxed as fringe benefits in the hands of the employee.  contributions up to 27.5% of the greater of your remuneration or taxable income are deductible for tax purposes  retirement fund contributions are capped at an annual maximum of R350,000, with undeducted amounts carried forward to future years
 
 


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Fund website: www.uctrf.co.za

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