Pension apportionment

Individuals may get the opportunity to work outside of South Africa and, while rendering these services, they will contribute to their occupational pension fund.

Pension Apportionment (Foreign Services Rendered)

Individuals may get the opportunity to work outside of South Africa and, while rendering these services, they will contribute to their occupational pension fund. This qualifies them for an exemption on a portion of their pension upon retirement, as stipulated in section 10(1)(gC) of the Income Tax Act No. 58 of 1962 (the Act).

Not all individuals will be aware of this provision, though, as retirement could still be decades away, and when it arrives many people forget about the foreign service rendered years ago.

What is pension apportionment?

Lump sums and annuities are deemed to be from a South African source if the services in respect of which these accrued were rendered in South Africa.

If services were rendered partly in and partly outside South Africa, an apportionment will have to be made. The portion which relates to services rendered in South Africa over the total service years will be deemed to be from a South African source. Section 10(1)(gC) will, however, exempt the portion that relates to the income from services rendered outside South Africa.

How it works

To qualify for the exemption, certain supporting documentation will be required and individuals are urged to keep sufficient records of any time spent working abroad while contributing to an occupational pension fund.

The supporting documentation for the foreign service exemption must therefore be kept until retirement or withdrawal.

Tax paid on the foreign sourced pension portion will have to be refunded if the requirements are met. An individual who is currently in such a position, or has been in this position, may qualify for a refund on the overpaid tax.

The FinGlobal solution

If you would like a free assessment please provide your contact details and a very brief explanation of the circumstances regarding your pension and foreign services rendered and we’ll get back to you!

Get a free tax refund assessment

Leave your details below.





Licensed South African Financial Services Provider FSP # 42872

Exchange rates

Can't find your country? Contact us


Other services


Please Call Me

We’ll answer all your questions

Free Financial Report

Get a FREE financial report on your South African policies

Our Fees

View information on our fees

Frequently Asked Questions

Have a question? Look at our FAQ’s or request a call back

Client testimonials

Very Professional service. Would use again. Highly recommended.

Anton Combrinck

My grateful thanks to FinGlobal (previously cashkows) for extricating my South African pensions so efficiently. They were an absolute pleasure to deal with.

Sue Bargery

Heritage Day – a day where South African’s everywhere celebrate their diversity

Heritage Day, celebrated on the 24th of September, is one of South Africa’s new public holidays when South Africans are encouraged to celebrate...
Read More

New Zealand is offering foreign teachers a $7000 incentive to teach in the country

Are you a teacher and do the wide, open spaces of New Zealand attract you? Well, then it’s your lucky day, month and even year as the New Zealand...
Read More

Qatar is fast becoming the most expat-friendly Gulf Arab State

Qatar has recently announced that expats living in the country could soon be entitled to permanent residency and that the new law will extend...
Read More
Let us call you for a FREE consultation

We’ll answer all your questions. Your personal consultation is completely free and without obligation.

Please Call Me
Request a call back        Please Call Me

Welcome to FinGlobal - previously

If you have any questions let us call you back and we'll answer all your questions regarding our services for South African expats.

You have Successfully Subscribed!