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Is a disability pension income is not taxable from 1 March 2015?

16 July 2015   (0 Comments)
Posted by: Author: SAIT Technical
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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 insurance"

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 hasn't changed. 

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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