Any contribution by an employer to a retirement fund for the benefit of the employee will be taxed as a fringe benefit in the hands of the employee. This will be prepopulated on the ITR12 from the IRP5 submitted by the employer. Total contributions to retirement funds (Pension, Provident & RAF) are deductible but limited to 27.5% of the greater of remuneration or taxable income (excluding lump sums), capped at an annual limit of R350 000. Where an employee earns no other income, remuneration will be used calculate the deduction. Contributions in excess of the annual limits will be rolled over to future years.