Supreme Court Act, 1959
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)RegulationsRegulations 2016Regulations in terms of paragraph 12D(5)(a) of Seventh Schedule to the Income Tax Act, 1962, on Determination of Fund Member Category Factor3. Determination of defined contribution component factor |
| (1) | The defined contribution component factor is the contribution rate (as specified in the rules of the fund) in respect of the total of the contributions to the fund by or on behalf of the employee and by or on behalf of the employer in respect of each defined contribution component. |
| (2) | Any contribution in respect of a risk benefit provided by the fund directly or indirectly for the benefit of a member of the fund or a dependant or nominee of that member, other than risk benefits provided by the fund solely by means of a policy of insurance if the fund pays the premiums in respect of that policy of insurance, must not be taken into account in determining the defined contribution component factor as contemplated in subregulation (1). |
| (3) | If a fund member is entitled to receive more than one defined contribution component— |
| (a) | the fund must calculate a defined contribution component factor in respect of each defined contribution component; and |
| (b) | the defined contribution component factor for the purposes of this regulation is the sum of the amounts calculated in terms of paragraph (a) less any defined contribution component factors used to calculate an underpin component factor in terms of regulation 5. |
