Tax on benefit
Regardless of the reason for the benefit received, it is considered earned income and subject to withholding tax.
The amount of tax payable on earned income depends on the form of return payment chosen, the reason for the benefit received and the length of time the individual has contributed.
If the benefit is paid as income, all the payments received in the year are subject to taxation.
If the benefit is paid as capital, then a deduction percentage is applied to the first capital payment and regular, periodical capital payments received every 5 years, the income subject to taxation being:
|
Up to 2 years |
Income 100% |
Income 60% |
Income 100% |
|
More than 2 years |
Income 60% |
Income 60% |
Income 60% |