Foreign Pension Tax Relief: What Treasury’s Latest Move Means for South African Retirees

Today SAIT welcomed the National Treasury's decision to partially accept the withdrawal of the tax exemption under Section 10(1)(gC)(ii), providing crucial relief and certainty for South African retirees who receive income from past employment abroad. The initial proposal would have completely removed the exemption, making foreign retirement benefits, such as pensions, annuities, and lump sums, fully taxable in South Africa and potentially jeopardising the financial stability of thousands of individuals who planned their retirement based on the existing tax framework.