Retirement Reform and other Changes to Tax Laws
SARS announced that certain Tax Laws are being postponed while others are still going ahead as planned. We would just like to clarify any confusion in this regard:
- Tax changes to retirement funds – All proposed tax changes to retirement funds have been delayed until at least 2016. This will have a delayed impact on the following:
– Increased tax deductibility upto 27.5% to all retirement funds
– Forced annuitisation on retirement from a provident fund
– Allowing an individual to claim tax deductions on contributions to provident funds
– Employer contributions to a pension/provident fund being treated as a fringe benefit in the employee’s hands.
- Income contribution benefit premiums – This has NOT been delayed.
As from 1 March 2015 all contributions will not be deductible for individuals/employees for tax purposes.
- Tax free savings accounts – This has NOT been delayed.
This is still to take effect on 1 March 2015, but we will have further updates on the processes and applicability once National Treasury issue their regulations.
All material subject to our Legal Disclaimers.