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Tax Administration Act, 2011 (Act No. 28 of 2011)

Regulations

Regulations for purposes of paragraph (a) of the Definition of "International Tax Standard)" in Section (1) of the Tax Administration Act, 2011 (Act No. 28 of 2011), promulgated under section 257 of the Act, Specifying the Changes to the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters

Annexes

Annex II : Excluded Accounts

 

Section VIII(C)(17)(g)

 

1. A Tax Free Savings Account referred to in section 12T of the Income Tax Act, 1962, and regulated by the Financial Services Board under section 12T(9)(c) of the Financial Institutions (Protection of Funds) Act, 2011.

 

2. A Central Securities Account, as defined in Financial Markets Act, 2012, and held in a central securities depository for purposes of that Act, that is held by or through one or more other Financial Institutions that are Reporting Financial Institutions or Participating Jurisdiction Financial Institutions, and which is to be treated as held by such other Financial Institutions, and such other Financial Institutions are to be responsible for any reporting required with respect to such central securities account.

 

3. A Mzanzi Account referred to in Public Compliance Communication No. 21 on the Scope and Application of Exemption 17 issued under section 4(c) of the Financial Intelligence Centre Act, 2001.

 

4. An Annuity Contract as envisaged by section 12M(2)(b) of the Income Tax Act, 1962, purchased in the name of a former employee, or such employee’s spouse or beneficiary to meet an employer’s future medical scheme contribution liability to the former employee.

 

5. A Living Annuity, meaning the right of an member of a retirement fund referred to in Annex I or his or her dependent or nominee, or any subsequent nominee, to an annuity maintained in South Africa and purchased from a registered long-term insurance provider or other approved financial services provider regulated by the Financial Services Board, or provided by the fund, on or after the retirement date of such member or former member with respect to which—
(a) the purchase consideration for the annuity is derived entirely from the retirement benefits determined under the rules of the fund on or after the retirement date or date of death of the member or former member as a result of his or her membership in the fund or the benefits described in subparagraph (f) of this paragraph;
(b) the value of the annuity is determined solely by reference to the value of assets which are specified in the annuity agreement and are held for purposes of providing the annuity;
(c) the amount of the annuity is determined in accordance with a method or formula prescribed by the Minister of Finance under the Income Tax Act, 1962;
(d) the full remaining value of the assets referred to in subparagraph (b) of this paragraph may be paid as a lump sum when the value of those assets falls below an amount prescribed by the Minister of Finance under the Income Tax Act, 1962;
(e) the amount of the annuity is not guaranteed by the long term insurance provider, other financial services provider, or retirement fund referred to in Annex I; and
(f) upon the death of the member or former member, the value of the assets referred to in subparagraph (b) of this paragraph may be paid to a nominee of the member or former member as an annuity or lump sum, or, in the absence of a nominee, to the deceased’s estate as a lump sum.

 

6. A Compulsory Annuity, meaning a non-transferable immediate life annuity that is issued by a registered long-term insurer to an individual to monetize a pension, annuity or disability benefit originating from a retirement fund referred to in Annex I.

 

7. Accounts held by a Non Profit Organisation—
(a) the activities of which are for the benefit of the general public at large and fall within the activities that are set out in Part I of the Ninth Schedule to the Income Tax Act, 1962; and
(b) is approved as a public benefit organisation by the Commissioner for SARS under section 30(3) of the Income Tax Act, 1962.