09 Apr 2019

Currently, the Income Tax Act exempts from income tax, up to 15 per cent of the employment income contributed to a Pension Fund by any employee.

This was said by the Minister of Finance and Economic Development, Mr Kenneth Matambo when responding to a question in Parliament from Jwaneng/Mabutsane MP, Mr Shawn Ntlhaile.

At the point of pension payout, Mr Matambo said pensioners were allowed to commute one third of their pension, which is paid out as a lump sum, free of tax.

Further, he said, pension income like any other income, also enjoyed the exemption from tax, of up to P36 000 per annum.

“My ministry is currently undertaking a holistic review of our taxation laws. In that respect, this matter, that is exemption of pension income from tax or reducing tax on pension income, will be submitted to the Taxation Review Committee to consider and advise accordingly,” he added.

Mr Ntlhaile wanted to know if Mr Matambo would review the Income Tax Act and Retirement Act with the view to exempting pensioners from tax or reduce pensioners’ taxable income. ENDS