Income Tax Act, 1962 (Act No. 58 of 1962)Rates of Normal Tax - 2012Paragraph 7 - Rates of normal tax - taxable income including retirement |
| 7. |
| a) |
| i) | If a retirement fund lump sum withdrawal benefit accrues to a person in any year of assessment commencing on or after 1 March 2012, the rate of tax referred to in section 1(1) of this Act to be levied on that person in respect of taxable income comprising the aggregate of— |
| aa) | that retirement fund lump sum withdrawal benefit; |
| bb) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in subitem (aa); |
| cc) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in subitem (aa); and |
| dd) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in subitem (aa), |
is set out in the table below:
Taxable income from lump sum benefits |
Rate of tax |
Not exceeding R22 500 |
0 per cent of taxable income |
Exceeding R22 500 but not exceeding R600 000 |
18 per cent of taxable income exceeding R22 500 |
Exceeding R600 000 but not exceeding R900 000 |
R103 950 plus 27 per cent of taxable income exceeding R600 000 |
Exceeding R900 000 |
R184 950 plus 36 per cent of taxable income exceeding R900 000 |
| ii) | The amount of tax levied in terms of item (i) must be reduced by an amount equal to the tax that would be leviable on the person in terms of that item in respect of taxable income comprising the aggregate of— |
| aa) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in item (i)(aa); |
| bb) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in item (i)(aa); and |
| cc) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the retirement fund lump sum withdrawal benefit contemplated in item (i)(aa). |
| b) |
| i) | If a retirement fund lump sum benefit accrues to a person in any year of assessment commencing on or after 1 March 2012, the rate of tax referred to in section 1(1) of this Act to be levied on that person in respect of taxable income comprising the aggregate of— |
| aa) | that retirement fund lump sum benefit; |
| bb) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum benefit contemplated in subitem (aa); |
| cc) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum benefit contemplated in subitem (aa); and |
| dd) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the retirement fund lump sum benefit contemplated in subitem (aa), |
is set out in the table below:
Taxable income from lump sum benefits |
Rate of tax |
Not exceeding R315 000 |
0 per cent of taxable income |
Exceeding R315 000 but not exceeding R630 000 |
R0 plus 18 per cent of taxable income exceeding R315 000 |
Exceeding R630 000 but not exceeding R945 000 |
R56 700 plus 27 per cent of taxable income exceeding R630 000 |
Exceeding R945 000 |
R141 750 plus 36 per cent of taxable income exceeding R945 000 |
| ii) | The amount of tax levied in terms of item (i) must be reduced by an amount equal to the tax that would be leviable on the person in terms of that item in respect of taxable income comprising the aggregate of— |
| aa) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum benefit contemplated in item (i)(aa); |
| bb) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum benefit contemplated in item (i)(aa); and |
| cc) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the retirement fund lump sum benefit contemplated in item (i)(aa). |
| c) |
| i) | If a severance benefit accrues to a person in any year of assessment commencing on or after 1 March 2012, the rate of tax referred to in section 1(1) of this Act to be levied on that person in respect of taxable income comprising the aggregate of— |
| aa) | that severance benefit; |
| bb) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the severance benefit contemplated in subitem (aa); |
| cc) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the severance benefit contemplated in subitem (aa); and |
| dd) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the severance benefit contemplated in subitem (aa), |
is set out in the table below:
Taxable income from severance benefits |
Rate of tax |
Not exceeding R315 000 |
0 per cent of taxable income |
Exceeding R315 000 but not exceeding R630 000 |
R0 plus 18 per cent of taxable income exceeding R315 000 |
Exceeding R630 000 but not exceeding R945 000 |
R56 700 plus 27 per cent of taxable income exceeding R630 000 |
Exceeding R945 000 |
R141 750 plus 36 per cent of taxable income exceeding R945 000 |
The amount of tax levied in terms of item (i) must be reduced by an amount equal to the tax that would be leviable on the person in terms of that item in respect of taxable income comprising the aggregate of—
| aa) | severance benefits received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the severance benefit contemplated in item (i)(aa); |
| bb) | retirement fund lump sum withdrawal benefits received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the severance benefit contemplated in item (i)(aa); and |
| cc) | retirement fund lump sum benefits received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the severance benefit contemplated in item (i)(aa). |