Government Notice No. 618 of 2020

Income Tax Act, 1962 » Notice in respect of Method or Formula for Purposes of Determination of Amount for...

Title	Income Tax Act, 1962 » Notice in respect of Method or Formula for Purposes of Determination of Amount for Purposes of Paragraph (b) of Definition of Living Annuity in section 1 (1) of the Act
Department	National Treasury
Gazette	National Gazettes, No. 43379 of 01 June, 2020, 2 page(s), 1.3Mb

STAATSKOERANT, 1 JUNIE 2020                         No. 43379    3

GOVERNMENT NOTICE
                                                           
                                                  NATIONAL TREASURY
          NO. 618            No. R.                                             June 2020         01 JUNE 2020
          
                                                MINISTER OF FINANCE

NOTICE IN RESPECT OF METHOD OR FORMULA FOR PURPOSES OF
                    DETERMINATION OF AMOUNT FOR PURPOSES OF PARAGRAPH (b) OF

DEFINITION OF LIVING ANNUITY IN SECTION 1(1) OF INCOME TAX ACT, 1962

I, Tito Titus Mboweni, Minister of Finance, hereby prescribe that -
                    (a)  at the election of the annuitant, from 1 June 2020 to 30 September 2020, the
                         amount referred to in paragraph (b) of the definition of "living annuity" in section
                         1(1) of the Income Tax Act, 1962 (Act 58 of 1962), may be determined to be not

less than 0,5 per cent and not greater than 20 per cent of the value of assets
                         referred to in paragraph (a) of that definition, irrespective of the date on which
                         the living annuity contract was concluded;

(b)  in addition to the election contemplated in paragraph (a), for the purposes of the
                         amount referred to in paragraph (b) of the definition of "living annuity" in section
                         1(1) of the Income Tax Act, 1962 (Act 58 of 1962) as prescribed by Government
                         Notice 290 published in Government Gazette 32005 of 11 March 2009, an

annuitant may elect a different draw-down percentage at the anniversary date of
                         inception if that anniversary date falls within the period 1 June 2020 to 30
                         September 2020.

.*-----'...--,........w  Q--`,-.-.;--fe_n._.,..-/
                    TT MBOWENI
                    MINISTER OF FINANCE

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Government Notice No. 618 of 2020

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