22 July 2016 South Africa disallows exemption for benefits received from a retirement fund located within the Republic Under current legislation, any lump sum, pension or annuity received by or accrued to a resident for past employment outside South Africa is exempt from tax in South Africa. Draft legislation proposes that the current dispensation be changed to only allow the exemption where such benefits are received from foreign retirement funds. Under this change, from March 1, 2017, South African residents will no longer be able to claim the exemption in terms of any lump sum, pension or annuity accrued in respect of services rendered outside South Africa where the retirement fund is registered in South Africa. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1275 |
