SARS fixed tax rate on Retirement incomes – 2022/2023 tax year
With the change in legislation from 1 March 2022 onwards, taxpayers who have multiple sources of income and Retirement income will be contacted by the Retirement Funds. The Funds are now required to deduct a higher rate of PAYE in line with the taxpayer’s total income from all sources.
As a taxpayer, you have two options as follows:
- You may decide to accept this directive (resulting in receiving less than in previous months), OR
- You may “Opt-Out” of this directive but only if you are satisfied that there will be no additional tax on assessment. If this option is required, the Funds would need to attend to certain forms as soon as possible.
Should you be contacted by your Fund, please contact me here to discuss which option is best for your personal tax needs as part of your tax and cashflow planning for the year.