{"id":423,"date":"2024-01-20T07:50:21","date_gmt":"2024-01-20T07:50:21","guid":{"rendered":"http:\/\/courses24.co.za\/?page_id=423"},"modified":"2024-01-20T07:50:21","modified_gmt":"2024-01-20T07:50:21","slug":"provident-fund-tax-2","status":"publish","type":"page","link":"https:\/\/uni1.co.za\/articles\/provident-fund-tax-2\/","title":{"rendered":"Provident Fund Tax"},"content":{"rendered":"\n<div class=\"advads-atf\" style=\"margin-top: 15px;margin-bottom: 20px;\" id=\"advads-313364907\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-9198760278752355\"\n     crossorigin=\"anonymous\"><\/script>\n<!-- Responsive ads atf -->\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-9198760278752355\"\n     data-ad-slot=\"8381596201\"\n     data-ad-format=\"auto\"\n     data-full-width-responsive=\"true\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div><p>A severance payment is a type of guaranteed fund in which the employee pays part of the income and the employer pays on the employee\u2019s behalf. Exemptions for amounts transferred to the Provident Fund are regulated by \u00a7\u00a7 10 Para. 12 ESTG.<\/p>\n\n\n\n<p>The Provident Fund requires both employer and employee to contribute 12% of her PF income. The employee-provided fund receives 8.33% of the employer\u2019s contributions, and the employee-provided fund receives the remaining 3.67%. The employer\u2019s payment to the employee deposit insurance scheme is 0.50% and the administrative fee is also 0.50%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4 Types of Provident Funds<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Recognized Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>All establishments with 20 or more employees are subject to the Provident Fund Act of 1952. The establishments covered by the scheme have the option of applying for the government-approved scheme or founding their own Provident Fund trust. The establishments can join the PF (Provident Fund) Act 1952, which is a recognized provident fund, which is a government-approved system. Alternatively, the employer and employee of the organization may form a trust to establish a provident fund scheme, with funds invested by the Provident Fund (PF) Act of 1952. Before it can be labeled as a recognized provident fund, the scheme must be approved by the commissioner of income tax.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>PPF (Public Provident Fund)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>For the general population, the government has established a provident fund. By creating a public provident fund account with an authorized bank, anyone can contribute to this scheme. Amounts ranging from INR 500 to INR 1,50,000 can be deposited. Following the completion of 15 years, the PPF (Public Provident Fund) corpus can be entirely withdrawn.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>Statutory Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The Provident Funds Act of 1925 established this plan. It is intended for government employees, accredited educational institutions, railways, universities, and other similar organizations. The General Provident Fund is another name for Statutory Provident Fund. The government adjusts the interest rates on General Provident Funds regularly. Employees in the private sector are not covered by the General Provident Fund (GPF).<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"4\">\n<li><strong>Unrecognized Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>If the commissioner of income tax does not approve the provident fund program established by the employer and employee (as described in Recognized Provident Fund), the scheme is considered unrecognized.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Tax Treatment of Provident Fund<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Tax on Recognized Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>When an employer\u2019s contribution to a provident fund reaches 12 percent, it is taxed. The employee\u2019s contribution to the provident fund is taxed.<\/p>\n\n\n\n<p>Tax will be deducted if the rate of interest credited to the provident fund is greater than 9.5 percent. The retirement payment is tax-free if the following conditions are met:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the employer-provided 5 years or more of continuous service.<\/li>\n\n\n\n<li>If the employee was fired for a variety of reasons, including health concerns, the employer\u2019s decision to stop doing business, and so forth.<\/li>\n\n\n\n<li>If an employee resigns and then returns to work for another company.<\/li>\n\n\n\n<li>If the employee\u2019s complete credit balance is transferred to his or her account under a pension system under section 80CCD.<\/li>\n<\/ul>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li><strong>Tax on PPF (Public Provident Fund)<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The contribution of an employer to a provident fund is taxed. The interest and retirement payments credited to the provident fund are tax-free.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"3\">\n<li><strong>Tax on Statutory Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>The employer\u2019s contribution to the provident fund is tax-free, while the employee\u2019s contribution is taxed. Tax-free interest and retirement payments are credited to the provident fund.<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"4\">\n<li><strong>Tax on Unrecognised Provident Fund<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Employer contributions to a provident fund are tax-deductible. Under the following circumstances, the retirement payment is taxable:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Under the heading Salaries, payments received in respect of the employer\u2019s contribution and interest are taxed.<\/li>\n\n\n\n<li>Payments received in exchange for interest on an employee\u2019s contribution are taxable as income from other sources.<\/li>\n\n\n\n<li>Payments received in exchange for an employee\u2019s contribution are not taxed.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Summary Table for PF Exemption<\/strong><\/h3>\n\n\n\n<p>The government has established numerous types of provident funds to encourage employees to save for their social security. In many circumstances, the employer also contributes a specified proportion of the employee\u2019s salary to these accounts. The full amount of the donation, plus interest, is credited to the employee\u2019s account. He will be paid from this money when he retires, as well as on other significant events. The employee\u2019s heirs will receive the entire sum if he dies.<\/p><div class=\"advads-content\" id=\"advads-3704055789\"><div style=\"width: 300px; padding: 20px; margin: 0 auto; border: 1px solid #ddd; border-radius: 8px; background-color: #f9f9f9; text-align: center; font-family: Arial, sans-serif;\">\r\n    <p style=\"font-size: 16px; margin: 0 0 10px;\">Need Information or Confused about Something ? <\/p>\r\n    <a href=\"https:\/\/onlineapplications.co.za\/ask\/\" style=\"display: inline-block; padding: 10px 20px; background-color: #007BFF; color: #fff; text-decoration: none; border-radius: 4px; transition: background-color 0.3s;\">Ask a Question<\/a>\r\n<\/div>\r\n<\/div><div class=\"advads-btf\" style=\"margin-top: 15px;margin-bottom: 20px;\" id=\"advads-2511653872\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-9198760278752355\"\n     crossorigin=\"anonymous\"><\/script>\n<!-- Responsive ads btf -->\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-9198760278752355\"\n     data-ad-slot=\"5513273173\"\n     data-ad-format=\"auto\"\n     data-full-width-responsive=\"true\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div>\n<div class=\"advads-cpc\" id=\"advads-2700930047\"><p>&nbsp;<\/p>\n<hr \/>\n<p>Sponsored Guide<\/p>\n<hr \/>\n<p><strong>Complete Guide to NSFAS Online Loan Application for South African Students (2025)<\/strong><\/p>\n<p>If you are a South African student looking to pursue higher education but are facing financial difficulties, the <strong>National Student Financial Aid Scheme (NSFAS)<\/strong> is one of the most accessible funding options available. NSFAS provides financial aid in the form of <strong>bursaries and loans<\/strong> to qualifying students at public universities and TVET colleges in South Africa.<\/p>\n<p>This guide will walk you through <strong>everything you need to know about the NSFAS loan application process<\/strong>, from eligibility requirements to application steps and frequently asked questions.<\/p>\n<hr \/>\n<h2>\ud83d\udccc What is NSFAS?<\/h2>\n<p>The <strong>National Student Financial Aid Scheme (NSFAS)<\/strong> is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.<\/p>\n<p>NSFAS <strong>offers both bursaries and income-contingent loans<\/strong>:<\/p>\n<ul>\n<li><strong>Bursaries<\/strong>: For eligible students who meet academic and household income criteria (especially for TVET and university students).<\/li>\n<li><strong>Loans<\/strong>: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.<\/li>\n<\/ul>\n<hr \/>\n<h2>\u2705 Who Qualifies for an NSFAS Loan?<\/h2>\n<p>To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:<\/p>\n<ul>\n<li>Be a <strong>South African citizen<\/strong>.<\/li>\n<li>Be <strong>financially needy<\/strong>, with a household income of <strong>less than R350,000 per year<\/strong>.<\/li>\n<li>Have a <strong>valid South African ID<\/strong>.<\/li>\n<li>Be <strong>enrolled or accepted<\/strong> to study at a <strong>public university or TVET college<\/strong>.<\/li>\n<li>Not be funded through another bursary program that covers all expenses.<\/li>\n<li>Maintain satisfactory <strong>academic progress<\/strong> (returning students).<\/li>\n<\/ul>\n<hr \/>\n<h2>\ud83d\udcda Courses Funded by NSFAS<\/h2>\n<p>NSFAS primarily funds <strong>undergraduate qualifications<\/strong>, but certain <strong>postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB)<\/strong> may be considered under the <strong>NSFAS loan scheme<\/strong>, not bursaries.<\/p>\n<p>If you\u2019re studying:<\/p>\n<ul>\n<li><strong>Undergraduate degree or diploma<\/strong>: You are likely eligible for a full NSFAS bursary.<\/li>\n<li><strong>Postgraduate study<\/strong>: You may qualify for a loan, depending on the course and funding availability.<\/li>\n<\/ul>\n<hr \/>\n<h2>\ud83d\udcc4 Required Documents for NSFAS Application<\/h2>\n<p>When applying, make sure you have the following documents scanned and ready:<\/p>\n<ol>\n<li><strong>Certified copy of your South African ID or Smart Card<\/strong>.<\/li>\n<li><strong>Parent(s) or guardian(s) ID documents<\/strong>.<\/li>\n<li><strong>Proof of income<\/strong> (latest payslips, UIF, or affidavit if unemployed).<\/li>\n<li><strong>Consent Form<\/strong> signed by your parent(s)\/guardian(s) to allow NSFAS to verify income.<\/li>\n<li><strong>Proof of registration or acceptance at a public institution<\/strong>.<\/li>\n<li><strong>Academic transcripts<\/strong> (for continuing or postgraduate students).<\/li>\n<\/ol>\n<hr \/>\n<h2>\ud83d\udda5\ufe0f How to Apply for an NSFAS Loan Online<\/h2>\n<h3>Step-by-Step NSFAS Online Application Process (2025)<\/h3>\n<ol>\n<li>\n<h3><strong>Visit the NSFAS Website<\/strong><\/h3>\n<p>Go to: <a href=\"https:\/\/www.nsfas.org.za\/\">https:\/\/www.nsfas.org.za<\/a><\/li>\n<li>\n<h3><strong>Create an Account<\/strong><\/h3>\n<ul>\n<li>Click on <strong>\u201cMyNSFAS\u201d<\/strong> and register your profile.<\/li>\n<li>You\u2019ll need a <strong>valid email address<\/strong> and <strong>South African cellphone number<\/strong>.<\/li>\n<li>Choose a strong password and verify your account via email or SMS.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><strong>Login and Start the Application<\/strong><\/h3>\n<ul>\n<li>After registration, log in to your <strong>MyNSFAS<\/strong> account.<\/li>\n<li>Click on <strong>\u201cApply\u201d<\/strong> to begin a new application.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><strong>Fill in Your Personal Details<\/strong><\/h3>\n<ul>\n<li>Input your <strong>ID number<\/strong>, name, surname, and other details exactly as they appear on your ID.<\/li>\n<li>Provide <strong>household income information<\/strong> and living arrangements.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><strong>Upload Required Documents<\/strong><\/h3>\n<ul>\n<li>Upload all supporting documents in <strong>PDF or JPEG format<\/strong>.<\/li>\n<li>Each document must be clear and under the size limit specified.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><strong>Submit Your Application<\/strong><\/h3>\n<ul>\n<li>Review your application for accuracy.<\/li>\n<li>Click <strong>\u201cSubmit\u201d<\/strong> and wait for a confirmation message.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h3><strong>Track Your Application<\/strong><\/h3>\n<ul>\n<li>Log in regularly to check your application status.<\/li>\n<li>You will be notified via SMS and email at each stage of the process.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<hr \/>\n<h2>\ud83d\uddd3\ufe0f Important NSFAS Dates (2025)<\/h2>\n<ul>\n<li><strong>Application Opening Date<\/strong>: September 1, 2025<\/li>\n<li><strong>Application Deadline<\/strong>: January 31, 2026<\/li>\n<li><strong>Appeals Period<\/strong>: February 2026 (if rejected)<\/li>\n<li><strong>Disbursement<\/strong>: After registration and approval<\/li>\n<\/ul>\n<p><em>Note: Dates are subject to change; always confirm on the official NSFAS website.<\/em><\/p>\n<hr \/>\n<h2>\ud83d\udcb8 What Does the NSFAS Loan Cover?<\/h2>\n<p>NSFAS funding typically includes:<\/p>\n<ul>\n<li><strong>Tuition fees<\/strong><\/li>\n<li><strong>Registration fees<\/strong><\/li>\n<li><strong>Accommodation (if living away from home)<\/strong><\/li>\n<li><strong>Meals and transport<\/strong><\/li>\n<li><strong>Learning materials (e.g., textbooks)<\/strong><\/li>\n<\/ul>\n<p>For <strong>loans<\/strong>, repayment is only required <strong>once you start working and earn above a threshold<\/strong> (around R30,000 annually, but subject to change).<\/p>\n<hr \/>\n<h2>\ud83d\udd04 NSFAS Loan Repayment<\/h2>\n<p>Repayments are:<\/p>\n<ul>\n<li><strong>Income-contingent<\/strong> \u2013 you only repay when you can afford to.<\/li>\n<li>Administered by <strong>DHET (Department of Higher Education and Training)<\/strong>.<\/li>\n<li><strong>Interest-bearing<\/strong>, but interest rates are low and favorable.<\/li>\n<\/ul>\n<p>You can also apply for a <strong>partial loan conversion to a bursary<\/strong> if you perform well academically.<\/p>\n<hr \/>\n<h2>\ud83d\udd01 How to Appeal a Rejected NSFAS Application<\/h2>\n<p>If your application is rejected, you may submit an appeal via your MyNSFAS portal:<\/p>\n<ol>\n<li>Log into your MyNSFAS account.<\/li>\n<li>Click on <strong>\u201cTrack Funding Progress\u201d<\/strong>.<\/li>\n<li>If rejected, click on <strong>\u201cSubmit Appeal\u201d<\/strong>.<\/li>\n<li>Upload any missing or corrected documents.<\/li>\n<li>Provide a clear explanation or motivation.<\/li>\n<\/ol>\n<hr \/>\n<h2>\ud83d\udcf1 NSFAS Contact Information<\/h2>\n<ul>\n<li><strong>Website<\/strong>: <a href=\"https:\/\/www.nsfas.org.za\/\">https:\/\/www.nsfas.org.za<\/a><\/li>\n<li><strong>Email<\/strong>: <a href=\"mailto:info@nsfas.org.za\">info@nsfas.org.za<\/a><\/li>\n<li><strong>Toll-Free Number<\/strong>: 08000 67327 (Monday\u2013Friday, 8 AM\u20135 PM)<\/li>\n<li><strong>Twitter<\/strong>: <a href=\"https:\/\/twitter.com\/myNSFAS\">@myNSFAS<\/a><\/li>\n<li><strong>Facebook<\/strong>: <a href=\"https:\/\/www.facebook.com\/myNSFAS\">NSFAS<\/a><\/li>\n<\/ul>\n<hr \/>\n<h2>\ud83d\udcdd Final Tips Before Applying<\/h2>\n<ul>\n<li>Apply <strong>early<\/strong> to avoid system overload near the deadline.<\/li>\n<li>Use <strong>your own email and cellphone number<\/strong> (do not use someone else\u2019s).<\/li>\n<li>Double-check that all your documents are <strong>certified and legible<\/strong>.<\/li>\n<li>Keep a <strong>copy of your submission confirmation<\/strong> for reference.<\/li>\n<\/ul>\n<hr \/>\n<p>By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams\u2014without the burden of immediate financial pressure.<\/p>\n<p>&nbsp;<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A severance payment is a type of guaranteed fund in which the employee pays part of the income and the employer pays on the employee\u2019s behalf. Exemptions for amounts transferred to the Provident Fund are regulated by \u00a7\u00a7 10 Para. 12 ESTG. The Provident Fund requires both employer and employee to contribute 12% of her\u2026 <span class=\"read-more\"><a href=\"https:\/\/uni1.co.za\/articles\/provident-fund-tax-2\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-423","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/pages\/423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/comments?post=423"}],"version-history":[{"count":0,"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/pages\/423\/revisions"}],"wp:attachment":[{"href":"https:\/\/uni1.co.za\/articles\/wp-json\/wp\/v2\/media?parent=423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}