Lump sum benefits are taxed on the following basis:
|Tax Rate||Withdrawal Lump Sum||Retirement Lump sum|
|0%||0 – R25,000||0 – R500,000|
|18%||R25,001 – R660,000||R500,001 – R700,000|
|27%||R660,001 – R990,000||R700,001 – R1,050,000|
Source: South African Revenue Service
Annuity payments are taxed as income, according to the personal income tax tables.