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
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...