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


 

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



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

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