July 2019


Leverage - July 2019 Edition
Retirement planning is a key part of any financial plan and is arguably even more critical for business owners, who too often think of the business as their retirement plan ‒ a risky prospect. In this issue legal adviser Misha Badassy recaps the vehicles that can be used for retirement planning, while legal adviser Ivan Matee examines why farmers face their own unique retirement challenges. Download


Retirement fund contributions – disallowed contributions
Since the introduction of the amended section 11F and section 10C, many clients have made ad hoc contributions into retirement funds (specifically, annuity funds) on an annual basis. This allows them to enjoy the exemption provided for in section 10C in respect of compulsory annuity income earned in that same year of assessment. This article delves further into this area.Download
Retirement fund transfers
This is a list of the transfers allowed between retirement funds, prior to retirement.Download
Access to retirement funds upon emigration or the cessation of a visa
From 1 March 2019, preservation funds have been brought in line with RAs in respect of access due to emigration or the cessation of a visa. This article clarifies the circumstances that allows withdrawal in respect of RAs and preservation funds, how emigration is defined by the SARB and the necessary administrative requirements for fund withdrawals.Download
Retirement fund contributions
The Taxation Laws Amendment Act of 2017 introduced section 11F in the Act, which prescribes the maximum deduction allowed for retirement fund contributions. This article sums up the tax implications of employer and employee contributions, the definition of remuneration versus taxable income and disallowed contributions.Download
Severance benefits
Here we unpack the definition of a severance benefit, the tax implications of a withdrawal of a lump sum from a retirement fund as a result of retrenchment and the circumstances that influence its taxability and other severance benefits.Download

Business Assurance - One Pagers

Retirement Funds – Tax Rules (V4 August 2019)
An updated summary of the tax rules governing the various types of Retirement Funds.Download