Monthly pension payments are paid by the EPPF to pensioners as well as to the beneficiaries of in-service members or pensioners who have passed away.
What happened last year for those pensioners who received more than one income
In the 2022/2023 tax year, if you received an income over and above your monthly pension payment, the South African Revenue Service (SARS) encouraged you to pay voluntary tax or consider a flat rate. Your option was implemented by the EPPF at that stage.
What you need to do now if you receive more than one income
SARS has just issued a flat rate tax directive for pensioners with more than one income for the 2023/2024 tax year. This may mean the tax you’re paying on your additional income is not enough to cover your tax liability once SARS completes your assessment.
You now have the option to opt out of the flat rate tax directive from SARS. Instead, you can pay voluntary tax.
If SARS determines you have paid extra tax, you’ll be eligible for a refund. This refund will be paid to you by SARS.
SARS has more information that you can read
Please click on this link to read more from the SARS website: Income from two sources | South African Revenue Service
Email us if you want to opt out of the flat rate tax directive and you want to pay voluntary tax
If you want to pay voluntary tax aside from the Pay As You Earn (PAYE) that is deducted every month, please send the following information to us by Tuesday, 18 April 2023, in order for the deduction to reflect in your May payment:
- Your full name and surname as it appears on your ID or passport;
- Your EPPF pension number;
- Tell us that you are opting out of the flat rate directive; and
- The amount in Rands that you want to pay for additional tax.
You will need to email this information to us via email@example.com
If you send us the relevant information after Tuesday, 18 April 2023, then the deduction will reflect in your June payslip.
If you’re receiving an additional income and want to pay tax according to the flat rate directive from SARS, there is no action required from you.
If you don’t receive an additional income, there is no action required from you on this matter.
The EPPF team