Govt explains how new tax updates impact retirement savings

Cape Town - In order to clear up any confusion about the nature, impact and aim of the new updates to the Tax Administration Amendment Act, especially in relation to retirement savings, the presidency has issued a statement  to answer frequently asked questions.

Which tax law is the Government passing that affects retirement policies?

The Government is updating the 2013 Taxation Laws Amendment Act it passed in 2013. It harmonised the tax treatment of contributions to retirement funds. Different types of retirement funds have different tax rules, and provident fund members enjoy no tax deduction for their contributions.