Business
What percentage tax is deducted on pension fund withdrawals?
Question:
What percentage tax will be deducted on pension fund withdrawals of R50 000 rand?
Answers:
Assuming you have not previously withdrawn from a retirement fund, the first R22 500 is paid out tax free, and the balance to R50 000 is taxed at 18%. So you would effectively pay tax of R4 950 on pension fund withdrawals of R50 000 (ie average rate of 10%).
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