1. Contributing to a Retirement Annuity
You can contribute up to 27.5% of your gross annual income. By doing so you receive a tax deduction, which can help reduce your annual tax amount.
2. Adding to your Tax-free Investment
Looking to grow your money without paying taxes? A tax-free investment is a smart choice. It’s main benefit is tax-free growth. Limited to R 36 000 in contributions per tax year, this is truly a great investment.
3. Taking advantage of Donations Tax Deductions
By donating up to 10% of your taxable income, you’ll receive a tax deduction on your contribution. This works similarly to how a retirement annuity deduction works.
4. Remember your Donations Tax Exemption
You have the opportunity to donate up to R100 000 per year to family or friends without incurring any donations tax. Any amount above this threshold will be taxed at 20%. Donations to your spouse, in the form of a loan or PBOs are exempt from this donations tax.
5. You can utilise your Capital Gains Tax (CGT) exemption
Each year you get R40 000 exemption from CGT. This means small adjustments to your investments may not have any tax implications. When it comes to Unit Trusts some funds with rebalance automatically. However, it is worth chatting to your Financial Advisor who can assist.
