IT-AE-41-G02 - Guide to Complete the Tax Directive ...

1 EXTERNAL Guide Guide TO Complete TAX Directive APPLICATION FORMS Guide TO Complete THE TAX Directive APPLICATION FORMS IT-AE-41-G02 REVISION: 14 Page 2 of 92 REVISION HISTORY TABLE Date Version Description 05-10-2020 11 The email address for manual tax directives has been changed to the new email address. 26-04-2021 12 The Guide was updated with the Provident and Provident Preservation funds compulsory annuitisation and with the following new reasons on the tax Directive application forms: Par (eA) Living annuity Commutation Termination of a Trust (Form E); Cessation of SA Residence (Form B and Form C); and Unclaimed death benefits (Form A&D). 06/12/2021 13 A lump sum calculator available for individuals and tax practitioners registered as eFiler.

2 List of directives that will not be addressed in this Guide . 25-04-2022 14 The Guide is updated with the legislation changes: The amount used to purchase more than one annuity may not be less than R165 000 if the remaining value of the benefit is more that R165 000. The paragraph 2(1)(c) transfers from one Preservation fund to another Preservation fund or retirement annuity fund . Guide TO Complete THE TAX Directive APPLICATION FORMS IT-AE-41-G02 REVISION: 14 Page 3 of 92 TABLE OF CONTENTS 1 PURPOSE .. 6 2 GENERAL INFORMATION .. 6 WHO MUST Complete AND SUBMIT A TAX Directive APPLICATION FORM? .. 6 Tax Directive simulator .. 7 Lump sum calculator .. 7 HOW TO OBTAIN A TAX Directive APPLICATION FORM? .. 7 HOW TO SUBMIT A TAX Directive APPLICATION FORM?

3 8 PROVIDENT AND PROVIDENT PRESERVATION fund 9 3 COMPLETING THE TAX Directive APPLICATION FORM .. 10 TAXPAYER DETAILS .. 10 Taxpayer Reference number .. 11 Taxpayer s Personal Detail .. 12 Annual Income .. 13 Is the taxpayer a non-resident? ( Complete the application forms on eFiling only) .. 14 Is the certificate of residence (citizenship certificate only where DTA is not applicable) attached?14 Taxpayer s addresses .. 15 PARTICULARS OF THE fund .. 15 PARTICULARS OF THE GROSS LUMP SUM DUE .. 19 FORM A&D .. 19 retirement .. 19 retirement due to ill-health .. 20 Death before retirement .. 21 Provident fund deemed retirement .. 22 Transfer on retirement [Par 2(1)(c)] .. 22 Unclaimed death benefits .. 23 Date of accrual .. 23 Date on which the member became a member of the fund (Joined date).

4 24 Gross amount of lump sum payment (Including the amount deemed to accrue in respect of par 2B of the Second Schedule and amount attributed to Pre 1 March 2021 Provident fund vested rights plus growth) .. 24 Gross amount of total benefit .. 27 Amount attributed to a non-member spouse in respect of divorce order .. 28 Amount attributed to Pre 1 March 2021 Provident fund vested rights plus growth .. 28 In the case of provident fund , total contributions by the member to the fund up to 1 March 2016 (excluding profit and interest): .. 29 In the case of provident fund , total contributions by the member to the fund from 1 March 2016 (excluding profit and interest): .. 29 Transfer from Pension fund (after tax amount) .. 30 Where member contributions to the fund have exceeded such amounts as allowed for deduction against income, state total amount of excess contributions.

5 30 Former AIPF member s contributions transferred to the fund .. 32 Transfer by non-member spouse previously taxed.. 32 Was a period consisting of a number of completed years used to determine the quantum of the benefit in terms of a formula prescribed in terms of the rules of the fund ? .. 32 Was there a partial withdrawal taken from this benefit in the previous or current fund prior to this payment? .. 33 Particulars of transfer on retirement .. 33 Did the fund purchase an annuity ? .. 34 Is the fund paying the annuity ?.. 36 Non Resident Service Rendered Inside Republic [Section 9(2)(i)].. 36 Period of employment in Public Sector fund (excluding AIPF) .. 36 Details of Salary earned (only applicable for date of accrual prior to 1 October 2007) (only on Form A&D).

6 38 Declaration .. 38 FORM B .. 39 Transfer .. 39 Divorce Transfer .. 40 Transfer Unclaimed benefit .. 40 Guide TO Complete THE TAX Directive APPLICATION FORMS IT-AE-41-G02 REVISION: 14 Page 4 of 92 Par (eA) Transfer / payment .. 41 Divorce Member spouse .. 41 Divorce Non-member spouse .. 42 Resignation .. 42 Withdrawal / winding up .. 42 Termination of employment (Retrenchment) .. 43 Future surplus .. 43 Unclaimed benefit .. 43 Security of mortgage bond order / housing loan .. 44 Transfer Inactive Member with Insufficient Information (ONLY AVAILABLE FOR ELECTRONIC TAX Directive SUBMISSIONS) .. 45 Emigration Withdrawal .. 45 Cessation of SA Residence .. 46 Withdrawal due to visa expiry .. 46 Gross amount of lump sum payment.

7 46 Date of accrual .. 47 Date on which membership commenced .. 48 Date of divorce order .. 48 If a public sector fund , the period, if any, during which the member was a member of another public sector fund : .. 48 Period of employment taken into account in terms of the rules of the fund : (only applicable to Public Sector funds) .. 48 Provident fund contributions .. 49 Transfer from Pension fund (after tax amount) .. 50 Transferred by non-member spouse previously taxed.. 50 If a policy of insurance is ceded to the member, state the surrender value as at date of cession (for the purpose of paragraph 4(2)bis of the Second Schedule): .. 51 Where member contributions to the fund have exceeded such amounts as allowed for deduction against income, state total amount of excess contributions.

8 51 Former AIPF member s contributions transferred to the fund .. 52 Did the fund pay any portion of the lump sum payment into another fund ? .. 52 Was there a partial withdrawal taken from this benefit in the previous or current fund prior to this payment? .. 54 Non Resident Service Rendered Inside / outside Republic [Section 9(2)(i)] .. 54 Period of employment in Public Sector fund (excluding AIPF) .. 55 Emigration withdrawal .. 57 Cessation of SA Residence .. 58 Expiry of Working Visa .. 58 Declaration .. 59 FORM C .. 60 retirement .. 60 retirement due to ill-health .. 60 Death prior to retirement .. 60 Transfer prior to 61 Discontinued Contributions .. 61 Future surplus .. 62 Divorce Member spouse .. 62 Divorce Non-member spouse.

9 62 Divorce Transfer .. 62 Emigration Withdrawal .. 63 Cessation of SA Residence .. 63 Withdrawal due to visa expiry .. 63 Date of accrual .. 64 Commencement date of policy .. 64 Date of death of member .. 64 Gross amount of lump sum payment .. 64 Total value of full annuity .. 65 Amount distributed to non-members spouse in respect of divorce order .. 65 Date of divorce order .. 65 Transferred by non-member spouse previously taxed.. 65 Death before 1 October 2007 .. 66 Where the member contributions to the fund have exceeded such amounts as allowed for deduction against income, state total amount of excess.. 66 Provident fund Contributions .. 66 Guide TO Complete THE TAX Directive APPLICATION FORMS IT-AE-41-G02 REVISION: 14 Page 5 of 92 Transfer from Pension fund (after tax amount).

10 67 Was there a partial withdrawal taken from this benefit in the previous or current fund prior to this payment? .. 67 Did the fund transfer the benefit to another fund before retirement ? .. 67 Did the fund purchase an annuity ? .. 68 Period of employment in Public Sector fund (excluding AIPF) .. 70 Emigration withdrawal .. 72 Cessation of SA Residence .. 73 Expiry of Working Visa .. 74 Declaration .. 74 FORM E .. 75 Taxpayer details .. 75 Particulars of fund .. 75 Particulars of Gross Lump Sum Due .. 76 Death Member / Former Member after retirement .. 76 Par. (c) Living annuity Commutation .. 77 Death- Next Generation Annuitant .. 78 Next Generation Annuitant Commutation .. 78 Transfer of an annuity .. 79 Par.(eA) Living annuity Commutation Termination of a Trust (Only on SARS eFiling).