Exemption: Benefits or advantages granted to employees who, after having retired from full-time service with the employer by whom such benefit or advantage was granted, have been re-employed before 1 March 1992 by such employer on a part-time basis, will be exempt from tax in terms of Section 10(1)(nG) if all of the following conditions are complied with — – the cash remuneration received by or accrued to the employee in respect of such part-time employment is payable at a rate not exceeding R5 000 per annum; and – the employee retired from full-time service on or after attaining the age of 60 years or as a result of ill-health or other infirmity; and – the benefit or advantage in question was granted before the employee so retired. The exemption shall not apply to any benefit or advantage granted to an employee who is re-employed on or after 1 March 1992 and such benefits will be subject to employees’ tax.
An employee, who retired before 1 March 1992 and has not been re-employed by his / her last employer, is not subject to tax in respect of any benefit or advantage granted to him / her by such employer prior to retirement, which he / she still receives after retirement.
All benefits enjoyed by a retired employee who retired on or after 1 March 1992 will be subject to tax in his / her hands irrespective of whether or not he / she is re-employed by his / her previous employer.