Pension Fund Taxation Issues
Applicable LegislationIncome Tax Act 58 of 1962
Taxation Laws Second Amendment Act 18 of 2009
(The above-mentioned amendment is the latest amendment to the Income Tax Act; for a list of all the amendments please click on the link below:http://www.sars.gov.za/home.asp?pid=2629 )
Latest Developments
Major changes to the taxation of retirement fund benefits have taken place over the past three years. Proposals in this regard in the Taxation Laws Amendment Bills this year largely refine the changes that were announced previously or correct anomalies that have arisen as a result. [Article in Tax Talk; please find full article attached]
Submissions to SARS
1008-Submission on Preservation Funds
1009-Submission regarding Income Tax: Commutation of Small Annuities
1010-Submission on Living Annuities
1025-Submission Regarding Paragraph 2B of the Second Schedule
1018-Submission on Retrenchments and access to benefits in a retirement annuity prior to age 55
1028-Submission on the Draft Taxation Laws Amendment Bill, 2010
Responses
Income Tax: Preservation Funds
Income Tax: Living Annuities
Income Tax: Transfer of Unclaimed Benefits from a Retirement Annuity Fund
Income Tax: Commutations of Small Annuities
Income Tax: Transfer into beneficiary funds from 1 March 2009 – 1 September 2009
Income Tax: Retrenchments and access to benefits in a retirement annuity prior to age 55
Response regarding paragraph 2B of the Second Schedule
Documents for Comment
Draft Taxation Laws Amendment Bill, 2010
Retirement Fund Practice Notes and General NotesRetirement Fund Practice Note:
RF 1/95 – (Augmentation of benefits by approved pension and provident funds)
RF 1/96 – (Calculation of flexible annuity benefits)
RF 1/98 – (Preservation Funds)
RF 1/04 – (Payment of Annuities in arrears)
General Notes:
GN 16 – Commutation of Small Annuities
GN 37 – Maintenance Awards
GN 33 – Divorce Awards