Retirement planning vehicles

10% of approved Remuneration of pension and provident funds. In practice up to 20% is allowed if justifiable

Section 11(1)

10% of approved Remuneration of pension and provident funds. In practice up to 20% is allowed if justifiable

Section 11(1)

Pre – June 1982; full premium
Term policy; full premium
Regulation policy; maximum of remuneration

Section 11(w) (dd)

Deductible with a max. of the greater of:
R1 750
OR
7.5% of pension remuneration

Any excess may not be carried forward to the following year of assessment

Limit now also applies to public sector employees.

Deduction per person.

Section 11(1)

Deductible with a max. of the greater of;
15% of non- retirement funding income;
OR
R3 500 allowable pension fund contribution;
OR
R1 750

Section 11(n)(aa)

R1 800 deductible p.a.

Deduction per person.

Any excess over R1 800 may be carried forward to the following year assessment.

Section 11(k) (ii)(aa)

R 1 800 deductible p.a

Section 11(n)(bb)

1/3 of total value (if annuity less than R1 800, full benefit)

Section 1 “pension fund”(c)(ii)(d)
Balance purchases compulsory annuity.
Taxed i.t.o. tax table

1/3 of the total value (if annuity less than R1 800, full benefit)

Section1 “Ra fund” (b)(ii)
Balance purchases compulsory
Annuity, taxed i.t.o. tax table

Any one the first two requirement for the R30 000 exemption is met (see below)
OR
Termination was due to ceasing business or redundancy as a result of employer’s general reduction in personnel and circumstances warrant concession.

Section 7A(4A),5(10)(g)

The amount subject to average rate is limited to 3x average annual remuneration. Excess taxed at Marginal rate.

Section 5(10)(d)(iA)(bb)

• R1 800 + amounts transferred to approved funds;
• or member’s contributions previously disallowed.

• R1 800 + amounts transferred approved funds;
• or member’s contributions previously disallowed.

Taxed at the higher of the average Rates in year of retirement and the Preceding year.

Section 5(10)(g)
Second Schedule paragraph 7

Taxed at the higher of the average Rates in year of retirement and the Preceding year.

Section 5(10)(g)
Second Schedule paragraph 7

Taxed at the higher of the average Rates in year of retirement and the Preceding year.

Section 5(10)(g)
Second Schedule paragraph 7

Premiums + 7% + 1/3(death benefit less premiums + 7%)

Balance purchases compulsory annuity
Section 1(b)(vi) “RA fund”

Taxed at the average rate of the deceased in year of death

Second Schedule paragraph 5(1)
Section 5(10)(g)

Taxed at the average rate of the deceased in year of death

Second Schedule paragraph 5(1)
Section 5(10)(g)

Taxed at the average rate of the deceased in year of death

Second Schedule paragraph 5(1)
Section 5(10)(g)

Taxed at the average rate of the deceased in year of death.
Limit to same as at retirement.

Second Schedule paragraph 5(1)
Section 5(10)(g)