Is a disability pension income is not taxable from 1 March 2015?
16 July 2015
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: One of our
clients alleges that her disability pension is not taxable anymore as from 1
march 2015. We are unsure if this is correct.
We basically just need confirmation from an official source
that disability pension income is not taxable from 1 march 2015.
A: The only
change that took effect on 1 March 2015 relates to the section 10(1)(gI)
exemption. It reads as follows:
"any amount received or accrued in respect of a policy
of insurance relating to the death, disablement, severe illness or unemployment
of a person who is the policyholder in respect of that policy of
Section 10(1)gA) has always exempted any disability pension
paid under section 2 of the Social Assistance Act, 1992 (Act 59 of 1992) and
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.