Page 100 - P6 Slide Taxation - Lecture Day 7 - Various Topics
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Unilateral reliefs
Exemption for foreign pensions and welfare payments.
• Any amount that is received by or that accrues to a resident under the
social security system of another country will be exempt from income tax
in South Africa (s 10(1)( g C)(i)).
• Lump sums, pensions and annuities from sources outside South Africa as
consideration for services rendered outside South Africa will be exempt (s
10(1)( g C)(ii)).
• This exemption does not apply to amounts received from a pension fund,
pension preservation fund, provident fund, provident preservation fund or
retirement annuity fund as defined in s 1.
• These definitions refer to domestic retirement funds. An exception exists
for amounts transferred to these domestic retirement funds from a source
outside South Africa.
• This exception is aimed at persons who transfer their retirement funds to
a South African retirement fund when retiring in South Africa. Amounts
received from domestic funds by these persons may be exempt.
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