Q&A Tax harmonisation and Retirement Reforms (3rd December 2015)
What are the changes that will come into effect on 1 March 2016?
The Taxation Laws Amendment Act, 2013 will come into effect on 1 March 2016. This law allows for a 27.5% tax deduction up to a maximum of R350 000 per annum for all retirement fund contributions. This law should have been implemented on 1 March 2015, but was delayed by one year to take account of concerns raised by some stakeholders. Further, the new law passed in Parliament has increased the amount required for annuitisation at retirement from R150 000 to R247 500, closes certain coverage gaps; and requires a review of the legislation after two years from the effective date, and to report this review to Parliament .