8 Questions
Who can invest in a Retirement Annuity?
Only natural persons can invest in a Retirement Annuity. Legal entities cannot be members of a Retirement Annuity.
Who can complete and invest/act on behalf of a Retirement Annuity member?
Legal guardians or persons with power of attorney or mandate acting on behalf of a member may complete and invest/act on behalf of a member (minor or in event of legal incapacity).
Can non-residents who have not formally emigrated contribute to retirement annuity funds in South Africa?
Yes, some foreign nationals temporarily residing in South Africa can contribute to retirement annuity funds (registered and tax approved in South Africa) and request lump sum withdrawals from retirement annuity funds upon their return to their home country.
Why won't non-residents temporarily working in South Africa be able to withdraw from their retirement annuity funds?
Currently, unless the definition of retirement annuity fund is amended, non-residents temporarily working in South Africa who took out membership with a retirement annuity fund won't be able to withdraw from such fund since they are not considered to be formally emigrating from SA when they return to their home country.
What change to the Income Tax Act is required to allow non-residents the same privileges as other emigrants upon leaving South Africa?
The Income Tax Act requires an amendment to allow these individuals the same privileges as other emigrants upon leaving South Africa.
What organizations have raised this matter with National Treasury regarding non-residents and retirement annuity fund withdrawals?
The Association for Savings and Investment South Africa ('ASISA') of which Allan Gray is a member and the Institute of Retirement Funds ('IRF') have raised this matter with National Treasury on numerous occasions.
What has been the response from National Treasury regarding the issue of non-residents and retirement annuity fund withdrawals?
To date, National Treasury has received no response to the matter raised by ASISA and IRF regarding non-residents and retirement annuity fund withdrawals.
Explain the issue with non-residents temporarily working in South Africa and their ability to withdraw from retirement annuity funds.
Currently, unless the definition of retirement annuity fund is amended, non-residents temporarily working in South Africa who took out membership with a retirement annuity fund won't be able to withdraw from such fund since they are not considered to be formally emigrating from SA when they return to their home country. The Income Tax Act requires an amendment to allow these individuals the same privileges as other emigrants upon leaving South Africa.
Test your knowledge on the rules regarding investments and contributions to a Retirement Annuity fund, including who can invest, legal entities restrictions, and exceptions for non-residents.
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