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Call for comment: retirement reform and non-retirement tax free savings products

19 March 2014   (0 Comments)
Posted by: Author: National Treasury
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Author: National Treasury

The National Treasury published two papers for comment that provide details on the proposed retirement reforms and tax free savings products as announced by the Minister of Finance in his budget speech last month.

The papers follow on the initial overview document on retirement reform, titled "Strengthening 
Retirement Savings: Overview of the 2012 Budget Proposals
” (May 2012). The papers are also 
consistent with the shift towards a Twin Peaks system of regulating the financial sector, as 
initiated by the publication of the document titled "A safer financial sector to serve South Africa 
” (February 2011). In particular, to ensure that customers or members of retirement funds 
are treated fairly at all times, including after they retire. 

The papers, together with their backgrounds are the following (please click on the name of the paper to open the it):

1. 2014 Budget update on retirement reforms 

This paper provides more details on the retirement reform announcements made by the Minister 
of Finance in his 2014 Budget Speech. It responds to public comments received in respect of 
the two papers on retirement reform titled "2013 Retirement reform proposals for further 
” (released on 27 February 2013) and "Charges in South African retirement funds” 
(released on 11 July 2013) and summarises the process of retirement reform from 2011 until the present, and lays out a future direction for the implementation of reforms over the next few years. 

2. Non-retirement savings: tax free savings accounts 

This paper provides more details on the non-retirement savings reform announcements made 
by the Minister of Finance in his 2014 Budget Speech and the Budget Review. The Minister 
announced in his speech that: "Legislation to allow for tax-exempt savings accounts will proceed 
this year, to encourage household saving”. 

This paper lays the basis for the legislation that will be published for public comment by July 
2014, and for tabling and enactment thereafter in the newly-elected Parliament before the end 
of the year. 

Please click here to access the media statement.

The SAIT will be making a submission to Treasury. All members are urged to let their voice be heard in the forming of South Africa's legislation and are accordingly requested to forward any comments on the above two papers to by no later than 28 April 2014.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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