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Is a UK pension taxable in South Africa?

15 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: A client of mine that’s a resident in South Africa receives a monthly state pension from the UK of +/- R 10,000 (R 100,000 p.a.). Am I correct in thinking that it is only taxable in the UK? 

A: With regards to the query tax residents of SA are taxable in general on their worldwide income. Therefore the UK pension received by an SA tax resident would constitute gross income as defined in section 1 of the Income Tax Act (ITA). However, in our view if the whole pension relates to the services rendered in the UK, then the exemption in section 10(1)(gC) ITA will apply.

In that instance it would not be necessary to revert to the provisions of a double tax agreement to determine taxing rights as SA would due to the exemption not tax the amount.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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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