Every year the National Treasury throws a few curveballs into the Medium Term Budget Policy Statement (MTBPS), and this year is no exception, with some changes announced to the taxation of retirement savings vehicles and microbusinesses.
From March 1 2009, pre-retirement withdrawals from designated retirement savings vehicles will be taxed, at rates shown below.
Proposed rate structure of pre-retirement withdrawals from retirement savings
R0 – R22500 – to be taxed at 0%
R22501 – R600000 – to be taxed at 18% of the amount above R22500
R600001 – R900000 – to be taxed at R103950 + 27% of the amount above R600000
R900001 and above – to be taxed at R184950 + 36% of the amount above R900000