ACT BEFORE THE END OF FEBRUARY TO REDUCE YOUR TAX BY ADDING TO YOUR RETIREMENT SAVINGS.
Updated: Feb 14
The end of the 2021 financial year is on the 28th February.
YOU STILL HAVE TIME TO REDUCE YOUR ANNUAL TAX BY INCREASING YOUR SAVINGS
Sars will refund (or subsidise) up to 45% of your savings contributions. It’s a no-brainer!
Contributions to Retirement Funds & Tax-Free Savings Accounts before the end of February may reduce your taxable income and consequently your tax payable.
Provisional taxpayers who need to make provisional tax payments in February can potentially reduce the tax payment due by 45% of the contribution paid.
If tax is being deducted from your salary, this contribution may increase your tax refund for the year by 45% of the contribution paid.
NB!!! The allowed deduction is 27,5% of taxable income, capped at R 350,000 per annum.
If you pay less than R 29,000 per month to retirement funds, you probably have additional tax deductibility.
This is a use it or lose it tax break. Your potential additional tax break for this year will be lost at the end of February!
RA’s have other tax benefits, including being free of estate duty on death. The growth in value, as a result of the performance of the portfolios they are invested in, is tax free.
You also have an annual allowance of R 33,000 to make use of tax-free savings accounts:
It does not reduce tax payable but all returns generated from this investment are tax-free.
Interested in the potential tax-reduction for the 2021 tax year?
PLEASE CONTACT US URGENTLY TO CHECK IF YOU QUALIFY!
Cut-off for additional contributions (including the paperwork) is 22 February 2021.
We look forward to assisting you in this regard.