FINANCIAL FORUM
Q&A: Why has the tax on my annuity changed?
Changes made to the Income Tax Act in 2017 removed the foreign service tax exemption in retirement funds for SA residents
17 September 2019 - 05:05
Q: Since 1984, a portion of my retirement benefit (annuity) has been sourced outside SA and described on my IRP5 as “code 3714 Other Allowances — non-taxable” and on the monthly payslips as “non-SA pension”.
Suddenly on the 2019 IRP5 they have lumped it with the main taxable annuity reflecting it as taxable. I have queried it with Alexander Forbes (who administer it) but they seem confused and are taking a long time to respond...
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