In order for you to benefit from the various tax breaks afforded by the government, this is an important time to work through a tax checklist.
The government gives you a tax deduction on the money you invest in a retirement fund up to an annual amount of 27.5% of the greater of your taxable income or remuneration, capped at R350,000 annually. The tax deduction for contributions to a retirement fund can boost your savings, but they are not tax free at retirement. You can access a limited amount tax-free at retirement and lower tax rates for over 65s and 75s.
In a retirement annuity that you can use if you are self-employed or want to boost your company retirement savings, you can only access your money when you retire after age 55, Anelisa Mti, advisory partner at Citadel, says. And you can only take one-third of the amount as a cash lump sum at retirement. The rest must be used to provide a pension in retirement through an investment-linked living or guaranteed life-annuity, Mti explains.
But Jaco Prinsloo, certified financial planner at Alexander Forbes Financial Planning Consultants, says while tax-free savings accounts are not designed to be your sole source of retirement savings, they do give you an opportunity to boost your savings. But remember your contributions to registered PBOs are tax deductible up to a limit of 10% of your taxable income. Any donation exceeding this limit will be carried forward and can be claimed as a deduction in the following tax year. Ten money mistakes that are keeping you poorThere are only a limited number of ways to save tax for the tax year ending at the end of this month.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
THE LEX COLUMN: Why Facebook supports more digital taxConditions look right for an old-fashioned multilateral stand-off over where tech giants pay tax
Source: BDliveSA - 🏆 12. / 63 Read more »
THE LEX COLUMN: Why Facebook supports more digital taxConditions look right for an old-fashioned multilateral stand-off over where tech giants pay tax
Source: BDliveSA - 🏆 12. / 63 Read more »
Source: Channel24 - 🏆 48. / 51 Read more »
Source: TheCitizen_News - 🏆 6. / 75 Read more »
Why pay more tax if you can save instead?A tax-free investment account gives you a chance to boost your nest egg with a lump sum
Source: BDliveSA - 🏆 12. / 63 Read more »
Ageing ASX gets a tweak for 2020A facelift and interior updates give the Mitsubishi crossover SUV a new look
Source: BDliveSA - 🏆 12. / 63 Read more »