section 64E.of the south african income tax
As of June 2021, Section 64E of the South African Income Tax Act (Act 58 of 1962) deals with the tax treatment of amounts transferred from a retirement annuity fund to a pension preservation fund or a provident preservation fund. This section allows for the tax-free transfer of funds between these different types of retirement savings vehicles, provided certain conditions are met.
In general, the transfer must be made in accordance with the rules and regulations set out by the Pension Funds Act, and the funds must be transferred directly from one fund to another without being paid out to the individual. Additionally, the transfer must be made within the prescribed time limits and for valid reasons, such as changing employment or restructuring retirement savings.
It is important for individuals to consult with a tax advisor or financial planner before making any decisions regarding the transfer of funds between retirement funds, as there may be tax implications and penalties associated with such transactions.