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Thread: RA Deduction on Payroll of Foreign Registered RA contributions

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    RA Deduction on Payroll of Foreign Registered RA contributions

    Good day All

    May expats have a Tax Benefit in RSA on an overseas registered RA they are contributing to?

    I know that an RA as defined in Section 1 of the Act will be allowed to provide tax relief as per section 11(N) in the Income Tax Act.

    But it is not clear in the RA definition if Foreign registered RAs will be included or excluded for tax relief.


    Regards
    A

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    Which country is he/she from? Many countries include specific percentage of the gross salary paid as tax which goes into a penssion after the specified age. Depending on their legislation in some countries that person has to actually work in their country to be able to contribute to a pension fund which will give him/her less pay on retirement. The whole structure is based on the years worked in that country and the type of job.

    That employee can get RA in SA and claim it as tax deduction, the proceeds won't be taxed within the fund, when he/she goes back to their country, they can withdraw their proceeds, they will be taxed and take the rest of the money up to a maximum of R5 000 000.

    If that diesn't answer your question, please PM me more details
    ---There is no traffic at the extra mile---

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