Taxation
Retirement Benefit
The first R550 000 payable at retirement or retrenchment from a pension, provident or retirement annuity fund is taxed at 0%.
The balance is taxed according to the following fixed scale:
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Amount: R0 – R550 000 Tax: 0% |
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Amount: R550 001 – R770 000 Tax: 18% of the amount above R550 000 |
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Amount: R770 001 – R1 155 000 Tax: R39 600 plus 27% of the amount above R770 000 |
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Amount: R1 155 001 and above Tax: R143 550 plus 36% of the amount above R1 155 000 |
This amount applies to the aggregate of all lump sums received over the member’s lifetime. This means that you cannot get R550 000 tax free from one fund and R550 000 from another fund. All your Fund Values will be added together and the first R550 000 will then be tax free. The balance will be taxed according to the scale above.
Any withdrawal benefit previously received tax free, as well as tax-free portions for amounts paid out in respect of divorces or maintenance orders after 1 March 2009 will also be deducted off the tax-free amount.
Death Benefit
The first R550 000 payable at retirement from a pension, provident or retirement annuity fund is taxed at 0%. The balance is taxed according to the following fixed scale:
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Amount: R0 – R550 000 Tax: 0% |
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Amount: R550 001 – R770 000 Tax: 18% of the amount above R550 000 |
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Amount: R770 001 – R1 155 000 Tax: R39 600 plus 27% of the amount above R770 000 |
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Amount: R1 155 001 and above Tax: R143 550 plus 36% of the amount above R1 155 000 |
This amount applies to the aggregate of all lump sums received over the deceased’s lifetime. This means that your dependants cannot get R550 000 tax free from one fund and R550 000 from another fund. All your Fund Values will be added together and the first R550 000 will then be tax free. The balance will be taxed according to the scale above.
Any withdrawal benefit previously received tax free, as well as tax-free portions for amounts paid out in respect of divorces or maintenance orders after 1 March 2009 will also be deducted off the tax-free amount.
Taxation on Resignation or Dismissal
A benefit payable from your Savings Pot on resignation or dismissal is taxed at your marginal rate.
A benefit payable from your Vested Pot is taxed according to the following fixed scale:
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Amount: R0 – R27 500 Tax: 0% |
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Amount: R27 501 – R726 000 Tax: 18% of the amount above R27 500 |
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Amount: R726 001 – R1 089 000 Tax: R125 730 plus 27% of the amount above R726 000 |
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Amount: R1 089 001 and above Tax: R223 740 plus 36% of the amount above R1 089 000 |
This applies to the aggregate of resignation or dismissal lump sums received over the member’s lifetime after 1 March 2009, as well as tax-free portions for amounts paid out after 1 March 2009 in respect of divorces or maintenance orders, which will reduce the tax-free portion available. This means that you cannot get R27 500 from this Fund 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 tax-free amounts paid to you will be deducted from your tax-free amount at retirement.
Taxation on Retrenchment
A lump sum benefit payable on retrenchment from your Savings Pot is taxed at your marginal rate.
A lump sum benefit payable on retrenchment from your Vested Pot is taxed according to the following fixed scale:
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Amount: R0 – R550 000 Tax: 0% |
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Amount: R550 001 – R770 000 Tax: 18% of the amount above R550 000 |
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Amount: R770 001 – R1 155 000 Tax: R39 600 plus 27% of the amount above R770 000 |
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Amount: R1 155 001 and above Tax: R143 550 plus 36% of the amount above R1 155 000 |
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 reduce the tax-free portion available.
Any tax-free amounts paid to you will be deducted from your tax-free amount at retirement.
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How to Claim
How to claim from your Savings Pot in EMERGENCIES ONLY
| Payroll Department |
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Telephone: 021 403 1234 Email: hrservices@vivoenergy.com |
| Benefits Counsellor |
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Telephone: 0860 000 381 |
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ALEX FORBES pension payroll |
