Tax implications on GEPF Divorce Claims

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