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Scorpion Legal Protection Newsletter

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Understand the new Tax Reform law

The 2015 Taxation Amendment Bill was created to encourage more South Africans to save for their retirement. Although there were many negative opinions surrounding the bill, the outcome is actually very positive for workers.

Members of provident funds are now also able to claim a larger tax deduction on their contributions (up to 27,5% of your pensionable income), and this could lead to an increase in your take-home salary. You will still be able to withdraw a lump sum at retirement, however you might have to reinvest some of your money into an annuity (depending on the value of your savings).

These changes were made so that more citizens will be able to provide for themselves when they retire. If you are a Scorpion policyholder and still unsure of how the new bill will affect you, feel free to give us a call.

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