New tax rule for retirees in South Africa

• Retirees in South Africa with multiple living annuities will no longer be able to apply the 'de minimis' threshold separately to each annuity under proposed tax changes.
• The proposed change aims to prevent retirees from holding multiple small annuities and commuting each one separately, addressing cases where the de minimis threshold was being applied individually to each annuity.
• Retirees with multiple living annuities are advised to review their positions and seek advice, as the proposed amendment could affect their ability to commute their annuities if the cumulative balance exceeds the prescribed limit.