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

Chapter II : The Taxes

Part I : Normal Tax

10C. Exemption of non-deductible element of compulsory annuities


(1) For the purposes of this section—


'compulsory annuity'

means the amount of the remainder of the retirement interest of a person payable in the form of an annuity as contemplated in—

(a) paragraph (ii)(dd) of the proviso to paragraph (c) of the definition of 'pension fund';
(b) paragraph (e) of the proviso to the definition of 'pension preservation fund';
(c) paragraph (b)(ii) of the proviso to the definition of 'retirement annuity fund'; or
(d) paragraph (e) of the definition of provident preservation fund.

[Definition substituted by section 16(1) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014) - commences March 2019]


(2) There shall be exempt from normal tax in respect of the aggregate of compulsory annuities payable to a person an amount equal to so much of the person's own 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—
(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]