Pretoria - Finance Minister Nhlanhla Nene has briefed Cabinet on the implementation of the Taxation Laws Amendment Act, which will take effect on 1 March 2016.
Minister in the Presidency for Planning, Monitoring and Evaluation, Jeff Radebe, on Thursday said Minister Nene briefed Cabinet on the implementation of the Taxation Laws Amendment Act of 2013 and 2014.
“These reforms are aimed at harmonizing and simplifying the taxation of retirement contributions and benefits. Extending the tax benefit to cover members’ provident funds will enable over one million workers to enjoy a higher take-home salary,” said Minister Radebe.
Minister Radebe was briefing reporters following a Cabinet meeting.
In addition, this will also prevent tax avoidance practices by higher-income earners to a maximum of 27.5% of remuneration or taxable income up to R350 000.
Minister Nene also briefed Cabinet on the principle of annuitisation for all retirement funds, whereby those benefitting from the tax deduction also have to annuitise part of their savings at retirement.
“These reforms are being implemented after extensive consultations with all stakeholders within and outside the National Economic Development and Labour Council,” said Minister Radebe.
At least 33 meetings have been held with labour and industry since 2012.
The overwhelming majority of stakeholders have indicated their full support for proceeding with the reforms on 1 March 2016. – SAnews.gov.za
