Taxation Withdrawal
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 |
This applies to the aggregate of all withdrawal lump sums received over the member’s lifetime after 1 March 2009. This means that you cannot get R27 500 from the UCTRF and R27 500 from the next fund you join. Both benefits will be added together and only the first R27 500 will be tax free. The balance will be taxed according to the above scale.
Any withdrawal or retrenchment benefit previously received tax-free (including any tax-free amount received from your Employer as a severance package), as well as tax-free portions for amounts paid out after 1 March 2009 in respect of divorces or maintenance orders, will be added to the lump sum prior to applying the table.
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