CMV Group

SARS recently announced a new service for Tax Deductions (PAYE) for pensioners, which will come into effect on 1 March 2022.

In essence, when a pensioner has only one source of income, the employee’s tax (PAYE) deduction system ensures the correct amount is deducted from their annuity or pension fund. Where a pensioner has more than one source of income, all sources are combined at the end of the tax year which results in the pensioner being placed in a higher tax bracket and being left with unexpected tax debt.

To assist pensioners, SARS will introduce a new service whereby they provide the retirement fund administrator with the PAYE deduction percentage that the fund will deduct from the pension or annuity fund. This will reduce the likelihood that the pensioner will be faced with expected tax debt at the end of the year. To read more, visit the SARS website.

We use cookies to improve your experience on our website. By continuing to browse, you agree to our use of cookies
X