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Are proceeds from a pension fund transferred to another fund considered non-taxable income?

Posted 18 November 2013 under Tax Q&A


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I changed employers, shortly before the beginning of the current tax year. At the time I transferred my pension/provident contributions across to another investment future fund (as you are allowed to do legally) without benefiting or receiving any physical proceeds. I have subsequently received an IT3(a) from the previous pension fund for the lump sum amount which has been recorded on my current pending tax return. I would assume that this is considered as non-taxable income ?

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TaxTim TaxTim says:
18 November 2013 at 17:01

Yes, you are not taxed on this until you actually withdraw it from the fund. There should be a number under the directive box on the bottom right hand corner of the IT3a.


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