Regulations > OECD Standard for Automatic Exchange of Financial Information in Tax Matters - effective 1 March 2026 > Annexures > Annex II : Excluded Accounts (Section III(C)(17)(g)

1.	A Tax Free Savings Account referred to in section 12T of the Income Tax Act, 1962, and regulated by the Financial Services Board under section 12T(9)(c) of the Financial Institutions (Protection of Funds) Act, 2011.

2.	A Financial Inclusion Account that meets the following requirements:

(a)	A depository account which only allows a transaction on the account that involves the withdrawal, transfer or making payment of an amount not exceeding R8 000 per day and not exceeding R25 000 in a monthly cycle;

(b)	The account balance must never exceed R25 000;

(c)	The account holder must not be able to transfer funds from a Financial Inclusion Account to an account held outside South Africa;

(d)

The account holder must be an individual who qualifies for financial inclusion purposes, identifiable and verifiable as a South African citizen under the South African Citizenship Act, 1995, or permanently resident in South Africa, and must fall below the tax threshold arising from the normal tax rebates in terms of section 6 of the Income Tax Act, 1962;

(e)	The account must not allow South African tax refund payments; and

(f)	The account holder must not simultaneously hold two or more Financial Inclusion Accounts which meet the requirements referred to above with the same Financial Institution.

3.	An Annuity Contract as envisaged by section 12M(2)(b) of the Income Tax Act, 1962, purchased in the name of a former employee, or such employee’s spouse or beneficiary to meet an employer’s future medical scheme contribution liability to the former employee.

A Living Annuity, meaning the right of an member of a retirement fund referred to in Annex I or his or her dependent or nominee, or any subsequent nominee, to an annuity maintained in South Africa and purchased from a registered long-term insurance provider or other approved financial services provider regulated by the Financial Services Board, or provided by the fund, on or after the retirement date of such member or former member with respect to which—

(a)

the purchase consideration for the annuity is derived entirely from the retirement benefits determined under the rules of the fund on or after the retirement date or date of death of the member or former member as a result of his or her membership in the fund or the benefits described in subparagraph (f) of this paragraph;

(b)	the value of the annuity is determined solely by reference to the value of assets which are specified in the annuity agreement and are held for purposes of providing the annuity;

(c)	the amount of the annuity is determined in accordance with a method or formula prescribed by the Minister of Finance under the Income Tax Act, 1962;

(d)	the full remaining value of the assets referred to in subparagraph (b) of this paragraph may be paid as a lump sum when the value of those assets falls below an amount prescribed by the Minister of Finance under the Income Tax Act, 1962;

(e)	the amount of the annuity is not guaranteed by the long term insurance provider, other financial services provider, or retirement fund referred to in Annex I; and

(f)	upon the death of the member or former member, the value of the assets referred to in subparagraph (b) of this paragraph may be paid to a nominee of the member or former member as an annuity or lump sum, or, in the absence of a nominee, to the deceased’s estate as a lump sum.

5.	A Compulsory Annuity, meaning a non-transferable immediate life annuity that is issued by a registered long-term insurer to an individual to monetize a pension, annuity or disability benefit originating from a retirement fund referred to in Annex I.

Tax Administration Act, 2011 (Act No. 28 of 2011)

Regulations

Annexures

Annex II : Excluded Accounts (Section III(C)(17)(g))