Answer grounded in published legislation
Your question
Are there any way to get a pension fund payment without your tax being updated
A pension or provident fund lump sum may be transferred or paid into a pension, provident, retirement annuity or preservation fund, and the transferred amount can be exempt from tax if the statutory conditions and time limit are met. This is a transfer of the benefit, not an untaxed cash payment to the member. 6
If money is withdrawn from a preservation fund and is not paid or transferred into another listed retirement fund, it must be included in the taxpayer’s taxable income for the relevant year of assessment. 1
The supplied sources do not establish a general way to receive a pension-fund cash payment while avoiding tax or without tax treatment being applied. A narrow exception exists only for a gratuity advanced under the Members of Parliament and other Office-bearers Pension Fund Act, which expressly exempts that advance from income tax. 3
Verified sources
Where this answer comes from
Income Tax Act 24 of 1981
(6) So much of any amount which has been withdrawn by the taxpayer from a preservation fund and which has not been paid or transferred into any pension fund, provident fund or retirement annuity fund, shall be included in the taxable income of such taxpayer in the year of assessment in which the taxpayer’s benefit from a pension fund or provident fund was exempted from the tax due to the transfer or payment thereof into such preservation fund. [Subsection (6) is inserted by Act 21 of 1999. ]
Income Tax Act 24 of 1981
sum benefits for members on retirement, or for widows, children, dependants or nominees of deceased members, or mainly for such purposes, and also for the purpose of providing benefits other than annuities or lump sum benefits to such persons; (b) that the rules of the fund provide - (i) that contributions to the preservation fund only be made by way of the transfer or payment of so much of the members’ share in a pension fund or provident fund, as the case may be, as may be transferred or paid to the preservation fund within the year of assessment or within a further period of three months following such year of assessment, as the result of the termination of such member’s membership of suc...
Members of Parliament and other Office-bearers Pension Fund Act 20 of 1999
(b) An amount equal to that portion may, subject to subsection (4)(b), be advanced to such member on that date from the State Revenue Fund, provided a written request to that effect is made by such member to the Treasury before the fixed date. (c) Notwithstanding anything to the contrary contained in the Income Tax Act, 1981 (Act No. 24 of 1981), the portion of the gratuity advanced in terms of paragraph (b) shall be exempt from income tax. (d) For the purposes of section 16(1)(z) of the Income Tax Act, 1981 it shall be deemed, notwithstanding anything to the contrary in this Act, that the pension scheme is a pension fund contemplated in section 1 of that Act and that the full benefit of a m...
Members of Parliament and other Office-bearers Pension Fund Act 20 of 1999
and (b) of every member of the pension scheme, as well as any interest thereon calculated in accordance with subsection (6), shall be paid from the State Revenue Fund to the pension fund for the benefit of the member concerned and in his or her name in such instalments as may be determined by the Minister of Finance from time to time, and which shall be paid in full to the pension fund upon the death of a member or when he or she reaches his or her retirement as determined in accordance with the rules of the pension fund. (6) The amount representing the accrued benefit of a member of the pension scheme shall, until it is fully paid to the pension fund, bear interest at a rate equal to the av...
Income Tax Act 24 of 1981
] (8) Any amount received by or accrued to a member of a retirement annuity fund shall be deemed to have been so received or accrued from a source within Namibia, irrespective of where payment of such amount is made and irrespective of where the funds from which payment is made are situate, if such member’s contribution to such retirement annuity fund was made by or on behalf of such member through the payment or transfer to such retirement annuity fund of a lump sum representing his or her accrued benefit in a pension fund, because - (a) such pension fund ceased to exist; or (b) the member, while being a member of such pension fund, elected that his or her accrued benefit in the pension fun...
Income Tax Act 24 of 1981
(w) so much of any amount received by or accrued to any person as is proved to the satisfaction of the Minister to be a bona fide bursary granted to enable or assist such person to study at a recognized educational or research institution; (x) [Paragraph (x) is deleted by Act 10 of 1993.] (y) [Paragraph (y) is deleted by Act 12 of 2022.] (z) so much of a lump sum benefit derived by the taxpayer from any pension fund, provident fund or preservation fund, as contemplated by paragraph (d), (dB) or (dD) of the definition of “ gross income”, and as is proved to the satisfaction of the Minister to have been paid or transferred during the year of assessment in question or within a period of three m...