Page 36 - Taxation F6 - The South African Tax System
P. 36

Purchased Annuity







          • The capital portion is exempt for tax purposes.




          • How do we determine the capital portion?



          • We use the following formula=A/B*C




          • A=Lump sum paid by the purchaser.




          • B=Total expected return




          • C=The annuity.













                                                                                                                                    36
   31   32   33   34   35   36   37   38   39   40   41