Taxation laws amendments: how they impact on retirement fund members
28 April 2017
On 19 January 2017, the Taxation Laws Amendment Act No. 15 of 2016 and the Tax Administration Laws Amendment Act No 16 of 2016 was promulgated in Government Gazette No 40562.
Below we briefly highlight the changes which impact on members of retirement funds:
Retirement fund deductions will be allowed against a member's passive income. Passive income includes capital gains for calculating the 27.5% deduction, but the actual deduction is limited to all taxable income excluding capital gains
Contributions made by a retirement fund on behalf of an employee for the benefit of members will be subject to fringe benefit tax in the hands of members
Withdrawal from a retirement annuity fund on emigration will only apply to South African residents who official emigrate and temporary residents whose visas expire. Residents who merely become non-residents are not allowed to withdraw from a retirement fund
- It will be compulsory for funds and administrators to apply for the directives on all transfers between approved funds
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