28 July 2022
Earlier this year retirement funds, retirement fund administrators and insurers implemented tax directive rates received from SARS in relation to annuitants earning more than one source of annuity income. Sanlam Life implemented this in March for life annuitants and Glacier implemented it in April for living annuitants.
Revised rate files
SARS has now sent revised rate files to the industry. These new rates serve as an update to the previous rates, which means that there are new annuitants on the lists, new rates in some instances and even previously affected annuitants who are no longer on the lists (we will remove the rate for these individuals).
The industry has been given 45 days from the date of their own tax directive to implement the changes.
The good news is that the directive received by Glacier confirms that annuitants who opted-out of this rate earlier in the year, can be disregarded for the purposes of this updated directive (i.e. they do not need to opt-out again).
Implementation at Glacier
The various teams in Sanlam and Glacier, that are responsible for the annuity incomes, are at the moment:
- analysing the data;
- awaiting a few points of clarification from SARS; and
- finalising implementation of the rules based on available information.
We will communicate the relevant detail to all affected intermediaries and annuitants in due course and will provide you with the information needed to assist your clients.
