Tax on provident fund payout

(Shutterstock)
(Shutterstock)

A Fin24 user wants to know how much tax he can expect to pay on a payout from his provident fund when he retires. He writes:

Please advise what the tax implications would be on an amount of about R950 000 paid out of a provident fund as I am retiring after serving for 17 years.

I will be 55 years old in April 2015 and am retiring as of the end of April 2015.

READ: How a provident fund is taxed

Marc Sevitz of TaxTim responds:

Provided that you have never withdrawn any amounts from a lump sum before and without any knowledge of your actual contributions to the fund, the most you would pay, using the current lump sum tax tables for retirement, would be R103 500.

ALSO READ: Tax on withdrawal from provident fund

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