Tag: retirement benefits
Clarification of 3-year rule for retirement benefits on emigration
Much confusion and debate seems to exist in the market regarding the changes to the access to retirement benefits (pension preservation funds, provident preservation funds and retirement annuity funds) on emigration. The concept of ‘emigration’ and the SARS approval process (via MP336b) falls away from 1 March 2021 and is replaced with the concept of an individual ‘ceasing to be a resident for tax purpose’ in South Africa.
The impact of retirement reform in South Africa
Changes to retirement benefits for provident fund members, initially meant to come in five years ago and now scheduled for next March, will see tax uniformity for all who contribute towards retirement. These changes, in terms of the Taxation Laws Amendment Act, will also encourage greater savings, something South Africa desperately needs as it seeks to crawl its way out of an economic hole.
