Tax for wife (retirement annuities)

[Go RSA]

The South African tax system used to work this way:

A couple used only the husbands tax number for their tax returns. The wife did not have a separate tax number! (Married in 1983).

 

We emigrated a long time ago. The SARS emigration was done on my tax number.  I have cashed in my retirement annuities and paid the South African tax on my withdrawal several years ago.

 

Now my wife wants to cash in her retirement annuities.  These are the tax tables for retirement annuities withdrawals:

Taxable income (R)	Rate of tax (R)
0 – 25 000	0%
25 001 - 660 000	18% of taxable income above 25 000
660 001 - 990 000	114 300 + 27% of taxable income above 660 000
990 001 and above	203 400 + 36% of taxable income above 990 000

 

Because I have cashed in my RAs, will her tax rate be 36% on everything she gets from her RAs, or will she also be entitled to the exemption on the first R25 000 etc?

 

Will she need to get a separate tax number, or can she use the tax number she had before we were married? Or should she just use the one we used to emigrate (mine)?

 

Any ideas you have on the tax situation for my wife will be welcome.

 

 

[Hugo2]

Good day

 

we now taxed separately and the table will apply to your wife and your wife's past income only. A new tax number for her will be required

 

the lump sum may be tax free in SA but need to be declared to ATO. The annual income paid monthly or any other interval may probably only be taxed by ATO but you need to apply to be exempt in SA

[Go RSA]

3 hours ago, Hugo2 said:

Good day

 

we now taxed separately and the table will apply to your wife and your wife's past income only. A new tax number for her will be required

 

the lump sum may be tax free in SA but need to be declared to ATO. The annual income paid monthly or any other interval may probably only be taxed by ATO but you need to apply to be exempt in SA

 

Thank you for your info.

Good to know.