Divorce Orders date after the 1st of March 2012:
No tax will be payable on any amount that becomes payable on or after 1 March 2012 in terms of a divorce order that was issued before
13 September 2007.
Divorce Orders date after the 1st of March 2012:
If an amount becomes payable by a retirement fund on or after 1 March 2012 to a non-member ex-spouse, that person (and not the member ex-spouse) will be subject to tax in respect of that amount.
| Taxable Income from Lump sum Benefits | Rate of Tax |
| R0 – R25 000 | 0% |
| R25 001 – R660 000 | 18 % of taxable income exceeding R25 000 |
| R660 001 – R990 000 | R114 300 plus 27% of taxable income exceeding R660 000 |
| R990 001 and above | R203 400 plus 36% of taxable income exceeding R990 000 |
Press release on clean break taxation.
Pre 1998 tax free contributions will be allowed and will be transferred to your preservation fund should you ellect to transfer.
Disclaimer: All the information supplied by this website are intended as guidelines only, it is advisable to contact Divorcesmart® directly for appropriate advice for your unique circumstances