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Thread: Endowment Policy

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    Platinum Member Mike C's Avatar
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    Endowment Policy

    Hi all - a small endowment policy I had for many years has matured and I was paid out in January.

    I never received and IT3 or anything like that from Momentum - just a letter informing that I was paid out.

    Must this amount be declared under "Income which you think is exempt from tax?"
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Platinum Member Mike C's Avatar
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    And another question - I get R750 a month for doing a company's books. I am not employed by the company.

    Where would I declare that and as what?
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    As far as I understand this endowment policy is exempt, not sure in which section of the Income Tax Act that is specified.

    But yes, you have to declare both.

    The R750 will be declared under the income statement part, where you can deduct expenses relating to this.

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    Mike C (03-Jul-13)

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    Email problem Rafael's Avatar
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    An endowment policy is taxed within the fund so it is payed out tax free
    You miss 100% of the chances you never take

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    Mike C (03-Jul-13)

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    Platinum Member Mike C's Avatar
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    The R750 will be declared under the income statement part, where you can deduct expenses relating to this.
    So I clicked the "Local Business, Trade and Prof Income (incl rental income)" section, to see where I declare the R750 per month.

    Ten columns were added asking about all kinds of things - A long list of income options, an even longer list of expenditure options, an area for Adjustments Add back, and Adjustments Allowable, Determination of Profit/Loss, stuff about EDZ (s 13quat) - whatever that is, and then on the last page two columns requiring a statement of Local Assets and Liabilities!

    Talk about overkill! Is all this necessary or am in the wrong section?
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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