Print Page   |   Report Abuse
News & Press: Technical & tax law questions

Is the balance of non-retirement funding income carried forward from one year to the next?

11 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

Q: Please can you let me know if the balance of non-retirement funding income is carried forward from one year to the next.

A: Non-retirement funding employment income is the amount of "remuneration” per the Fourth Schedule of the Income Tax Act (ITA) that is not "retirement funding employment income” as defined in section 1 of the ITA. It is merely used to determine the income tax deduction in section 11(k) & (n) of the ITA for pension and RAF contributions. 

As the deduction is based per year on the retirement remuneration earned in that year, there is no balance that rolls forward. For example if the taxpayer had non-retirement employment income in year 1 & 2 of R100 but only contributed to a RAF in year, his deduction would be based only on the R100 in year 2 and not on R200.

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.


WHY REGISTER WITH SAIT?

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.

MINIMUM REQUIREMENTS TO REGISTER

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.

Membership Management Software Powered by YourMembership.com®  ::  Legal