Income Tax Act, 1962 (Act No. 58 of 1962)

Chapter II : The Taxes

Part I : Normal Tax

10C. Exemption of non-deductible element of qualifying annuities
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[Section 10C heading substituted by section 14(1)(a) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020]

 

(1)For the purposes of this section—

 

"qualifying annuity"

means the amount of the retirement interest of a person payable in the form of an annuity including a living annuity—

(a)as contemplated in paragraph (ii)(dd) of the proviso to paragraph (c) of the definition of "pension fund";
(b)as contemplated in paragraph (e) of the proviso to the definition of "pension preservation fund";
(c)as contemplated in paragraph (b)(ii) of the proviso to the definition of "retirement annuity fund";
(d)as contemplated in paragraph (ii)(dd) of the proviso to the definition of ‘provident fund’ in section 1(1);
(e) as contemplated in paragraph (e) of the definition of "provident preservation fund" in section 1(1); or
(f) as contemplated in paragraph (ii) of the further proviso to the definition of ‘pension fund’ in section 1(1);
(g) as contemplated in paragraph (d) of the definition of ‘retirement component’ in section 1(1); or
(h) as contemplated in paragraph (ii) of the further proviso to the definition of ‘provident fund’ in section 1(1).

[Section 10C(1)(f), (g) and (h) inserted by section 2(1)(c) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 2(2))]

 

(2)There shall be exempt from normal tax in respect of the aggregate of qualifying annuities payable to a person an amount equal to so much of any contributions to any pension fund, provident fund and retirement annuity fund that did not rank for a deduction against the person's income in terms of section 11F as has not previously been—

[Words preceding section 10C(2)(a) substituted by section 12(1)(d) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - comes into operation on 1 March 2021 (section 12(2)]

(a)allowed to the person as a deduction in terms of the Second Schedule; or
(b)exempted from normal tax in terms of this section,

in respect of any prior year of assessment.

[Section 10C(2) substituted by section 24(1) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 March 2016]

 

[Section 10C substituted by section 14(1) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020 - comes into operation on 1 March 2020 and applies in respect of any contributions made to a provident or provident preservation fund in determining the taxable annuity received during any year of assessment from such fund in relation to annuities received on or after 1 March 2020 (Section 14(2)]