Government Notice No. 636 of 2020

Income Tax Act (58/1962) » Determination of Amount of Definition of Living Annuity 1 (1)

Title	Income Tax Act (58/1962) » Determination of Amount of Definition of Living Annuity 1 (1)
Department	National Treasury
Gazette	National Gazettes, No. 43398 of 05 June, 2020, 1 page(s), 142Kb

36    No. 43398                GOVERNMENT GAZETTE, 5 JUNE 2020

NATIONAL TREASURY
                                                GOVERNMENT NOTICE
          NO. 636                                                                                 05 JUNE 2020
                               No. R.
                                                                             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.

TT MBOWENI
                      MINISTER OF FINANCE

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Government Notice No. 636 of 2020

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