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Taxation of Benefits
Understanding the tax treatment of your retirement fund contributions and benefits is an important part of planning for retirement.
The Taxation of Benefits Guide explains the current tax legislation as it applies to the Political Office-Bearers Pension Fund. Download a copy of the guide below.
Key Points
- Contributions to a Provident Fund are tax deductible within certain limits set by SARS.
- As an approved provident fund, you may select any combination of pension and/or lump sum at retirement.
- Lump sum benefits on retirement are subject to retirement lump sum tax calculated on a sliding scale.
- Resignation or retrenchment benefits may also be subject to tax — please refer to the guide for current tax tables.
Tax legislation changes regularly. Always consult the latest guide or seek financial advice before making decisions.