WHILE jury is out on provident fund lump sums, retirement reforms are a step in the right direction Errol Meyer Senior Manager, Advisory Propositions at Standard BankTHE Taxation Laws Amendment Act, 2015 has passed some of the government’s retirement reform proposals into law, though some confusion still persists with regard to the new tax relief available to retirement fund members and the lump sum treatment of provident fund members.However, it must not be forgotten that salaried taxpayers have limited income tax relief available to them and these changes can provide them with some much-needed relief.According to the changes, the tax deduction for contributions to all retirement funds (including provident funds) will increase increased to 27.5% of the greater of remuneration or taxable income up to a cap of R350,000 per year, from 1 March 1 2016. So this This rate applies to the aggregate of contributions made to an individual’s pension, provident and retirement annuity (RA) funds...
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