GOOD NEWS FOR RESIDENTS WHO RECEIVE A PENSION FROM A SOURCE “OUTSIDE SOUTH AFRICA”

Tuesday, November 25, 2014
  • SHARE THIS ARTICLE

The South African Revenue Service (“SARS”) has on 14 November 2014 issued Binding General Ruling 25 (“BGR25”) to clarify their interpretation of the income tax exemption which applies to pension benefits from a foreign source. The above exemption is contained in section 10(1)(gC)(ii) of the Income Tax Act, 1962 (the “ITA”) and exempts from normal tax any pension received by or accrued to a resident “from a source outside the Republic [of South Africa] as consideration for past employment outside South Africa”.

Read further