Will my pension fund pay-out be delayed if I owe SARS money?


1. What percentage tax does SARS deduct when one resigns from a government pension fund that gets paid into your bank account. 2. I have just submitted my SARS tax return and owe R1 800 for the current tax year (submitted on 30 September 2013). I do not have any disputes with SARS - will this delay my pension fund pay-out?



SARS will apply the withdrawal lump sum tax table to your cash gratuity. Assuming you have not previously withdrawn from a retirement fund, you will receive the first R22 500 tax-free, you will pay tax of 18% on the balance to R600 000, 27% on the balance to 27% and 36% on any amounts above 900 000. Any previous retirement fund withdrawals are taken into account when applying this tax table. Re your second question, this should not hold up your pension fund pay-out, although if you settled the amount owing, it would certainly remove any doubt.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.

Get investment and saving tips straight to your inbox.

Related FAQ

Can I change my portfolio after signing up?

Yes you can definitely change your portfolio after signing up. To do so, you simply need to log into...

Related FAQ

What do I need to invest in a 10X TFSA?

To sign up for a TFSA with 10X, you'll need the following documents: a valid South African ID or pas...


How much do I need?

We can help you plan your future. Use our calculator to see if you are on track for a comfortable retirement.

RA Calculator

Get started or switch to 10X today.