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Taxation on foreign sourced pension

Posted 21 March 2016 under Tax Questions

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Karibi says:
19 March 2016 at 2:41

My wife and I are Irish and UK citizens respectively, currently living in the UK and are interested in the feasibility of retiring to South Africa. Our method of retirement would be either on a temporary retirement visa or as a person of independent financial means. I only mention this in case it impacts on my question. My particular interest is understanding how my UK pension income would be taxed in SA. My pension would be derived from a number of sources
1. UK State pension
2. Company pension. All pension is derived from activities not associated with South Africa
3. Personal pension plan. All funds are not associated with South Africa

From my research it suggests that the above would have to be detailed in my SAR tax return but would not be taxed. I would be grateful if you could confirm or correct this statement.

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TaxTimTaxTim says:
21 March 2016 at 13:25

That is correct yes, foreign pensions are not subject to tax in South Africa, but would need to be declared. You would only pay tax on any income actually earned in South Africa or if you become a tax resident any other income earned worldwide, less any taxes already paid in that other country. Pension would still remain exempt.

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