The long-awaited 2015 Taxation Laws Amendment Act and the Tax Administration Laws Amendment Act were officially signed into law by President Jacob Zuma at the end of December and come into effect on 1 March, also known as T-day.

From 1 March 2016 workers and employees who have contributed to provident funds will no longer be able to cash in their retirement savings on resignation, as the new laws will only allow monthly payments from accumulated provident and pensions funds.

Money saved before 1 March this year is not affected and people who are 55 years and older on 1 March are not affected.

But money saved from 1 March will be affected as follows: if the amount is less than R247 500 it can be withdrawn as a lump sum; and if the money is more than R247 500, up to a third could be withdrawn as a lump sum and the remaining two-thirds would need to be annuitised.

The laws also aim at rationalising and equalising the existing range of pensions and provident fund products.

Read the Press Release by the National Treasury here.

Frequently Asked Questions. Read more here.

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