Fundraise on MathsGee
First time here? Checkout the FAQs!
x

*Math Image Search only works best with zoomed in and well cropped math screenshots. Check DEMO

0 like 0 dislike
75 views
What is non-pensionable income?
in Economics and Finance by Platinum (131,378 points)
reopened by | 75 views

1 Answer

0 like 0 dislike
Best answer
If you do not belong to a workplace retirement fund, then all your income would be nonpensionable. Alternatively, if only your basic salary is pensionable, other remuneration such as commissions, bonuses and overtime would be considered non-pensionable. The earnings of self-employed people, as well as taxable rental and interest income are also non-pensionable.

The concept of non-pensionable is no longer so relevant. It was important in the past (until 29 February 2016) because the tax deduction on your RA contributions was limited to \(15 \%\) of your "non-pensionable income". There was no rand cap on the amount you could claim, provided it was no more than \(15 \%\) of your non-pensionable income.

The new tax laws have done away with the distinction of pensionable and nonpensionable income in the context of your RA. While the required contribution to your employer's pension or provident fund is still based on your employer's definition of "pensionable income", this no longer defines what you can claim in respect of your RA contributions.

Instead, the new rules provide that you can claim RA contributions against your entire income. You may claim contributions up to \(27,5 \%\) of your total income, subject to an annual limit of R350,000. Note however that these annual limits apply to the total value of your contributions to all your retirement funds (pension, provident and RA funds).

https://www.10x.co.za/
by Platinum (131,378 points)
edited by

Related questions

1 like 0 dislike
1 answer
0 like 0 dislike
1 answer
asked Sep 24, 2020 in Economics and Finance by CT Diamond (48,952 points) | 190 views
0 like 0 dislike
1 answer
0 like 0 dislike
1 answer
0 like 0 dislike
1 answer
0 like 0 dislike
1 answer
asked Jun 10, 2020 in Mathematics by Joshua Mwanza Diamond (52,788 points) | 151 views
0 like 0 dislike
1 answer
asked Jun 7, 2020 in Mathematics by Joshua Mwanza Diamond (52,788 points) | 554 views
0 like 0 dislike
1 answer
0 like 0 dislike
1 answer
0 like 0 dislike
1 answer

Join the MathsGee Learning Club where you get study and financial support for success from our community. CONNECT - LEARN - FUNDRAISE


On the MathsGee Learning Club, you can:


1. Ask questions


2. Answer questions


3. Vote on Questions and Answers


4. Start a Fundraiser


5. Tip your favourite community member(s)


6. Create Live Video Tutorials (Paid/Free)


7. Join Live Video Tutorials (Paid/Free)


8. Earn points for participating



Posting on the MathsGee Learning Club


1. Remember the human


2. Behave like you would in real life


3. Look for the original source of content


4. Search for duplicates before posting


5. Read the community's rules




CLUB RULES


1. Answers to questions will be posted immediately after moderation


2. Questions will be queued for posting immediately after moderation


3. Depending on how many posts we receive, you could be waiting up to 24 hours for your post to appear. But, please be patient as posts will appear after they pass our moderation.


MathsGee Android Q&A