Older Persons Act, 2006
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 Factor5. Determination of underpin component factor |
| (1) | The underpin component factor must be determined in accordance with the formula— |
in which formula—
(a) 'X' represents the underpin component factor to be determined;
(b) 'A' represents the greater factor of—
| (i) | the defined contribution component factor calculated utilising the formula in regulation 3(1) for the defined contribution component used for the purposes of determining the underpin component; or |
| (ii) | the defined benefit component factor calculated by utilising the formula in regulation 4(1) for the defined benefit component used for the purposes of determining the underpin component. |
(c) 'B' represents the number 0.1 0; and
(d) 'C' represents the smaller factor of—
| (i) | the defined contribution component factor calculated utilising the formula in regulation 3(1) for the defined contribution component used for the purposes of determining the underpin component; or |
| (ii) | the defined benefit component factor calculated by utilising the formula in regulation 4(1) for the defined benefit component used for the purposes of determining the underpin component. |
| (2) | If a fund member is entitled to receive more than one underpin component in respect of a fund member category— |
| (a) | the fund must calculate an underpin component factor in respect of each underpin component; and |
| (b) | the underpin component factor for the purposes of this regulation is the sum of the factors in terms of paragraph (a). |
