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Tax on living annuity?

Posted 12 August 2015

Ian says:
11 August 2015 at 21:26

I currently contribute to a provident fund as well as my employer. My portion is taxable and the employer's not. When I retire I plan on investing in a living annuity, will the income from the living annuity be taxable?

TaxTim TaxTim says:
12 August 2015 at 11:34

Yes, income from a living annuity is taxed as per the normal tax rates for individuals (i.e same as your monthly salary). PAYE is withheld by the Fund and paid to SARS and the net amount will be paid to you on a monthly basis.

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