CATEGORIES
- (1) Negotiating Tax Debt and Payment Arrangements with SARS
- (31)Accounting
- (2)Accounting for Income Tax
- (1)Accounting for Income Tax
- (7)Administration of Estates
- (1)Advisory Services
- (1)Application of tax rates, s6(2) rebates
- (1)Assessed losses
- (4)Audit, Reviews & Other Services
- (9)Blogs
- (8)Capital Gains Tax
- (1)Capital Gains Tax - Individuals Tax
- (1)Capital Gains Tax Implications of Trusts
- (2)Case study: Home office expense
- (1)Case study: Travel allowances
- (1)Company Formations
- (1)Compliance
- (123)Corporate Tax
- (9)Customs and Excise
- (2)Deceased Estate
- (1)Deductions Pre-trade and prepaid expenses
- (1)Deregistration
- (2)Employer and Employee (PAYE and UIF Specific)
- (1)Estate Duty
- (1)Events / Webinars
- (9)Faculty News
- (2)Farming
- (152)Individuals Tax
- (1)Input - Customs Duty
- (3)Interest
- (13)International Tax
- (17)Legislation
- (1)Low interest rate loans and loan subsidies
- (1)Nature of the rights of beneficiaries
- (1)Notional input tax
- (9)Payroll
- (2)Practical Payroll
- (2)Provisional tax (Link with other Taxes)
- (2)SARS Dispute Resolution
- (4)SARS Issues
- (1)Salaried Employees
- (134)Tax Administration
- (2)Tax Administration Part 2B: Resolving Problems with SARS using the Tax Ombud
- (1)Tax Administration Part 3B Dispute Resolution - Objection and appeal
- (3)Tax Update
- (1)Tax implications of loans to trusts
- (1)Tax residence
- (1)Tax returns and payments
- (2)Transfer-Pricing
- (1)Trust Income / Gain Allocations
- (1)Trust types and income allocations
- (6)Trusts
- (70)VAT
- (3)VAT periods
- (1)Wear and tear allowances
- (1)Wills, Estates & Trusts
- (1)Zero Rated
- (1)eFiling
- Show All
The countdown begins for retirement funds to comply with the final Default Regulations
- 27 May 2021
- Individuals Tax
- Leigh Sedice and Sajeel Bhagwanjee
Wednesday, 20 September 2017
Important:
This article is based on tax law for the tax year ending 28 February 2018.
Authors: Leigh Sedice and Sajeel Bhagwanjee (ENSafrica)
The final Default Regulations, issued in terms of section 36 of the Pension Funds Act, 1956, were recently issued by the South African Minister of Finance. They aim to provide retirement funds with greater discretion and flexibility in relation to their default investment portfolios and annuity strategies.
To comply with the regulations, many funds will need to amend their rules and investment policy statement. The board of trustees of funds will also need to carefully consider their fund’s position to ensure compliance with the new regulations.
On 22 July 2015, the first draft of the Default Regulations was published by National Treasury. The first draft broadly followed the principles set out by National Treasury in its 2011 paper titled “Charges in South African Retirement Funds”. Following extensive consultation with various stakeholders, National Treasury published a revised second draft of the Default Regulations on 10 December 2016. Following further amendments to the second draft, the final Default Regulations were issued on 25 August 2017, and took effect on 1 September 2017.
This article first appeared on ensafrica.com.