SA Budget 2018/19 – Tax rates for retirement lump sum benefits

RETIREMENT LUMP SUM benefits

Tax relief on retirement lump sum benefits is allocated once in a lifetime in other words if it’s used up you can’t claim it again. For example, if a person used R300 000 of the R500 000 with the first lump sum, the balance left is R200 000 and once this is used up this relief is not available again.  For more details on how it works, read our Budget Tax Guide.

Withdrawal Benefit

2019 tax year (1 March 2018 – 28 February 2019) – No changes from last year No changes from last year

Taxable income (R)​ Rate of tax (R)​
0 – 25 000​ ​0%
​25 001 – 660 000 ​18% of taxable income above 25 000
​660 001 – 990 000 ​114 300 + 27% of taxable income above 660 000
​990 001 and above ​​203 400 + 36% of taxable income above 990 000

 

2018 tax year (1 March 2017 – 28 February 2018) – No changes from the previous year

​Taxable income (R) ​Rate of tax (R)
0 – 25 000 0%
25 001 – 660 000 18% of taxable income above 25 000
660 001 – 990 000 114 300 + 27% of taxable income above 660 000
990 001 and above ​203 400 + 36% of taxable income above 990 000

 

2017 tax year (1 March 2016 – 28 February 2017)

​Taxable income (R) ​Rate of tax (R)
0 – 25 000 0%
25 001 – 660 000 18% of taxable income above 25 000
660 001 – 990 000 114 300 + 27% of taxable income above 660 000
990 001 and above ​203 400 + 36% of taxable income above 990 000

 

2016 tax year (1 March 2015 – 29 February 2016)

​Taxable income (R) ​Rate of tax (R)
0 – 25 000 0%
25 001 – 660 000 ​18% of the amount above 25 000
​660 001 – 990 000 ​114 300 + 27% of the amount above 660 000
​990 001 and above ​203 400 + 36% of the amount above 990 000

2015 tax year (1 March 2014 – 28 February 2015)

​Taxable income (R) ​Rate of tax (R)
​0 – 25 000 ​0%
​25 001 – 660 000 ​18% of the amount above 25 000
​660 001 – 990 000 ​114 300 + 27% of the amount above 660 000
​990 001 and above ​203 400 + 36% of the amount above 990 000

 

Retirement & Death Benefits or Severance Benefits

2019 tax year (1 March 2018 – 28 February 2019) – No changes from last year
Taxable income (R) ​Rate of tax (R)
0 – 500 000​ ​0% of taxable income​
​500 001 – 700 000​ ​18% of taxable income above 500 000
700 001 – 1 050 000​ ​​36 000 + 27% of taxable income above 700 000
​1 050 001 and above ​130 500 + 36% of taxable income above 1 050 000
2018 tax year (1 March 2017 – 28 February 2018) – No changes from the previous year
​Taxable income (R) ​Rate of tax (R)
0 – 500 000 0% of taxable income
500 001 – 700 000 18% of taxable income above 500 000
700 001 – 1 050 000 ​36 000 + 27% of taxable income above 700 000
1 050 001 and above 130 500 + 36% of taxable income above 1 050 000
2017 tax year (1 March 2016 – 28 February 2017)
​Taxable income (R) ​Rate of tax (R)
0 – 500 000 0% of taxable income
500 001 – 700 000 18% of taxable income above 500 000
700 001 – 1 050 000 ​36 000 + 27% of taxable income above 700 000
1 050 001 and above 130 500 + 36% of taxable income above 1 050 000
2016 tax year (1 March 2015 – 29 February 2016)
​Taxable income (R) ​Rate of tax (R)
0 – 500 000 0%
500 001 – 700 000 ​18% of the amount above 500 000
​700 001 – 1 050 000 ​36 000 + 27% of the amount above 700 000
​1 050 001 and above ​130 500 + 36% of the amount above 1 050 000
2015 tax year (1 March 2014 – 28 February 2015)
​Taxable income (R) ​Rate of tax (R)
0 – 500 000 ​0%
​500 001 – 700 000 ​18% of the amount above 500 000
​700 001 – 1 050 000 ​36 000 + 27% of the amount above 700 000
​1 050 001 and above ​130 500 + 36% of the amount above 1 050 000
Last Updated: 24/02/2018