“withdrawal interest” means the value of the member’s share of the pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund value, as determined in terms of the rules of the fund on the date on which the member elects to withdraw due to an event other than the member attaining normal retirement age;

[Definition of “withdrawal interest” inserted by section 2(1)(zH) of Act 3 of 2008 and substituted by section 2(1)(h) of Act 34 of 2019 deemed effective on 1 March, 2019]

“Tax Administration Act” means the Tax Administration Act, 2011 (Act No. 28 of 2011);

“securities lending arrangement” means a ‘lending arrangement’ as defined in the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007);

“taxpayer” means any person chargeable with any tax leviable under this Act;

“severance benefit” means any amount (other than a lump sum benefit or an amount contemplated in paragraph (d)(ii) or (iii) of the definition of “gross income”) received by or accrued to a person by way of a lump sum from or by arrangement with the person’s employer or an associated institution, as defined in paragraph 1 of the Seventh Schedule, in relation to that employer in respect of the relinquishment, termination, losections repudiation, cancellation or variation of the person’s office or employment or of the person’s appointment (or right or claim to be appointed) to any office or employment, if-

 

(a)     such person has attained the age of 55 years;

 

(b)     such relinquishment, termination, loss, repudiation, cancellation or variation is due to the person becoming permanently incapable of holding the person’s office or employment due to sickness, accident, injury or incapacity through infirmity of mind or body; or

 

(c)     such termination or loss is due to-

 

(i)      the person’s employer having ceased to carry on or intending to cease carrying on the trade in respect of which the person was employed or appointed; or

 

(ii)      the person having become redundant in consequence of a general reduction in personnel or a reduction in personnel of a particular class by the person’s employer,

 

unless, where the person’s employer is a company, the person at any time held more than five per cent of the issued shares or members’ interest in the company:

 

Provided that any such amount which becomes payable in consequence of or following upon the death of a person must be deemed to be an amount which accrued to such person immediately prior to his or her death;

[Definition of “severance benefit” inserted by section 6(1)(zF) of Act 7 of 2010 and amended by section 7(1)(zK) and (zM) of Act 24 of 2011 and by section 1(1)(n) of Act 5 of 2026 effective on 1 March, 2026 and applicable in respect of years of assessment commencing on or after that date]

“this Act” includes the regulations;