LEGAL NOTE: FEBRUARY 2026 | REVENUE LAWS AMENDMENT AMENDMENT ACT 6 OF 2025
- Anu Ananmalay
- Feb 4
- 2 min read
THE REVENUE LAWS AMENDMENT ACT 6 OF 2025 (ACT) has been proclaimed on the
19 December 2025.
There are no material changes to any existing laws but the focus in this amendment was to introduce technical and policy clarifications to support the implementation of the two-pot retirement system.
The Act introduces the following key changes:
Clarification on the timing of the seeding amount calculation for Provident funds, providing certainty to retirement fund members and administrators. The Income Tax Act introduced these changes to better align the rules for Provident and Provident Preservation fund members who were 55 or older on 1 March 2021. The amendment introduces more flexibility in determining the “seeding date” and how the seeding amount is calculated, limiting it to either 31 August 2024 or the last day of the month in which the member elects to opt in, as per The Fund’s rules. Effective date: deemed to have come into operation on 1 September 2024.
Clarification of the definition of “members’ interests” in each of the three components, specifying that the components must be reduced proportionally by applicable Section 37D deductions to ensure that Maintenance claim deductions under Section 37D of the Pension Funds Act are applied proportionally across all components, as maintenance had previously been erroneously left out of the sections dealing with proportionate deductions. Effective date: deemed to have come into operation on 1 September 2024.
Alignment of the definition of ‘retirement annuity fund’ to ensure consistency with the intended objectives of the reform by explicitly defining it as the total member’s interest (correction of the proviso within the definition). This amendment rules out any ambiguity, but no material impact. Effective date: deemed to have come into operation on 1 March 2025 and applies in respect of years of assessment on or after that date.
This publication is provided as general information only. It is not advice and should not be relied upon without a discussion regarding your own facts and circumstances.
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