Page 701 - SAIT Compendium 2016 Volume1

RATES OF NORMAL TAX
(b) (i) If a retirement fund lump sum bene t accrues to a person in any year of assessment commencing on or after 1 March 2015, the rate of tax referred to in section 2 (1) to be levied on that person in respect of taxable income comprising the aggregate of—
(aa) that retirement fund lump sum bene t;
(bb) retirement fund lump sum withdrawal bene ts received by or accrued to that person on or after 1 March 2009 and prior to the accrual of the retirement fund lump sum bene t contemplated in subitem (aa);
(cc) retirement fund lump sum bene ts received by or accrued to that person on or after 1 October 2007 and prior to the accrual of the retirement fund lump sum bene t contemplated in subitem (aa); and
(dd) severance bene ts received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the retirement fund lump sum bene t contemplated in subitem (aa),
is set out in the table below:
Taxable income from lump sum bene ts
Rate of tax
Not exceeding R500 000
0 per cent of taxable income
Exceeding R500 000 but not exceeding R700 000
18 per cent of amount by which taxable income exceeds R500 000
Exceeding R700 000 but not exceeding R1 050 000
R36 000 plus 27 per cent of amount by which taxable income exceeds R700 000
Exceeding R1 050 000
R130 500 plus 36 per cent of amount by which taxable income exceeds R1 050 000
(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 bene ts received by or accrued to that person on or after 1 March 2009 and
prior to the accrual of the retirement fund lump sum bene t contemplated in item (i) (aa);
(bb) retirement fund lump sum bene ts received by or accrued to that person on or after 1 October 2007 and prior to the
accrual of the retirement fund lump sum bene t contemplated in item (i) (aa); and
(cc) severance bene ts received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the
retirement fund lump sum bene t contemplated in item (i) (aa).
(c) (i) If a severance bene t accrues to a person in any year of assessment commencing on or after 1 March 2015, the
rate of tax referred to in section 2 (1) to be levied on that person in respect of taxable income comprising the aggregate of—
(aa) that severance bene t;
(bb) severance bene ts received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the
severance bene t contemplated in subitem (aa);
(cc) retirement fund lump sum withdrawal bene ts received by or accrued to that person on or after 1 March 2009 and
prior to the accrual of the severance bene t contemplated in subitem (aa); and
(dd) retirement fund lump sum bene ts received by or accrued to that person on or after 1 October 2007 and prior to the
accrual of the severance bene t contemplated in subitem (aa), is set out in the table below:
Taxable income from lump sum bene ts
Rate of tax
Not exceeding R500 000
0 per cent of taxable income
Exceeding R500 000 but not exceeding R700 000
18 per cent of amount by which taxable income exceeds R500 000
Exceeding R700 000 but not exceeding R1 050 000
R36 000 plus 27 per cent of amount by which taxable income exceeds R700 000
Exceeding R1 050 000
R130 500 plus 36 per cent of amount by which taxable income exceeds R1 050 000
(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) severance bene ts received by or accrued to that person on or after 1 March 2011 and prior to the accrual of the
severance bene t contemplated in item (i) (aa);
(bb) retirement fund lump sum withdrawal bene ts received by or accrued to that person on or after 1 March 2009 and
prior to the accrual of the severance bene t contemplated in item (i) (aa); and
(cc) retirement fund lump sum bene ts received by or accrued to that person on or after 1 October 2007 and prior to the
accrual of the severance bene t contemplated in item (i) (aa).
8. The rates of tax set out in paragraphs 1, 2, 3, 4, 5 and 7 are the rates required to be xed by Parliament in accordance
with the provisions of section 5 (2) of the Income Tax Act, 1962.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 693
RATES AND MONETARY THRESHOLDS