Changes to Retirement fund deductions and Income Protection Policies from 1 March 2015
Note the following changes that will occur from 1 March 2015:
1. Retirement Reform
The Taxation Laws Amendment Act was gazetted on 12 December 2013. From this date, Section 11k will allow a tax deduction for any amount contributed to any pension fund, provident fund or retirement annuity fund to a limit of the lesser of-
R350 000 or
27.5% of the person’s remuneration or taxable income.
From 1 March 2015 there will be no tax deduction for any premiums paid to an income protection policy.
Also from this date, all payouts from income protection policies will be tax free, as long as the person covered by the policy is the policyholder. This means the life assured must own the policy.
Information taken from Discovery Life’s eDiscoverer of the 20/02/2014