24 July 2019 at 19:47
I am confused and I need some clarity regarding money I am contributing into a pension fund. I am making monthly contributions into someone else%u2019s pension fund. I was wondering whether I can deduct my contributions from my income for tax purposes. Can I claim these contributions back? I am not certain whether this is doable and would appreciate your help.
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25 July 2019 at 7:35
Unfortunately, it is only the person who the retirement fund belongs to (the policyholder) who can benefit from the contributions by deducting the contribution for tax purposes. If the person who pays the monthly contributions is not the policyholder they can unfortunately not claim any deduction on those contributions. The taxpayer would need to submit to SARS an IT3(f) tax certificate which is in their name in order to obtain the deduction. It is different from a medical aid where you can potentially claim the medical aid credit if you contribute to a medical aid on behalf of a dependent (where you are not the main member).