In our previous blog post, we advised that the 2015 Taxation Laws Amendment Bill had been passed by Parliament and only required the signature of the President.
The Bill has now been signed, effectively making T-Day law with effect from 1 March 2016.
In summary, the tax changes effective from 1 March 2016 (T-Day), are:
What should employers do?
The tax changes have created uncertainty among members of retirement funds. This uncertainty is mainly owing to rumour and misunderstanding.
The tax changes are largely a positive step for the retirement fund industry as it encourages saving through greater tax relief, thereby creating the conditions for members to be financially secure at retirement.