BENEFITS ACCRUING UPON RETIREMENT AND BENEFITS DEEMED TO HAVE ACCRUED IMMEDIATELY PRIOR TO PERSON’S DEATH: DEDUCTIONS
5.
(1) The deduction to be allowed for the purposes of paragraph 2(1)(a) is an amount equal to so much of-
(a) contributions that did not rank for a deduction against the person’s income in terms of section 11F to any pension fund, pension preservation fund, provident fund, provident preservation fund and retirement annuity fund of which he or she is or previously was a member;
[Item (a) substituted by section 112(1) of Act 31 of 2013, by section 63(1)(a) of Act 17 of 2017 and by section 40(1) of Act 23 of 2020 deemed effective on 1 March, 2016]
(b) any amount transferred for the benefit of the person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as a result of an election made in terms of section 37D(4)(b)(ii) of the Pension Funds Act;
[Paragraph (b) substituted by section 86 of Act 25 of 2015 effective on 8 January 2016]
(c) any amount that is deemed to have accrued to the person as contemplated in paragraph 2(2)(b);
(d) any amount, to the extent that that amount was paid or transferred to a pension preservation fund or provident preservation fund as an unclaimed benefit as defined in section 1 of the Pension Funds Act and was subject to tax prior to that transfer or payment; and
[Paragraph (d) substituted by section 86 of Act 25 of 2015 effective on 8 January 2016]
(e) any other amounts in respect of which the formula in paragraph 2A applies, which have been-
(i) paid into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for the person’s benefit by a public sector fund; and
(ii) transferred into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund directly from a fund contemplated in subitem (i) for the person’s benefit,
less the amount represented by symbol A when so applying that formula,
[Item (e) substituted by section 63 of Act 17 of 2017 effective on 1 March 2018]
as has not been exempted in terms of section 10C or has not previously been allowed to the person as a deduction in terms of this Schedule in determining the amount to be included in that person’s gross income.
(2) The amount determined in terms of subparagraph (1) may not exceed the amount of the lump sum benefit in respect of which it is allowable as a deduction.
(3) For the purposes of this paragraph, the surrender value of any policy of insurance ceded or otherwise made over to the person by any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund and ceded or otherwise made over by the person to any other such fund, or any amount paid by the person into the latter fund in lieu of or as representing such surrender value or a portion thereof, shall be deemed to be an amount paid into the latter fund by the former fund for the benefit of the person.