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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Fund website: www.uctrf.co.za

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