Save up to 1/3 off your tax bill & Boost your Retirement Savings!
South African Retirement Annuities and Tax-Free Savings Accounts are the ideal way to invest tax efficiently for your retirement.
Tax deductible Retirement Annuities
Contributions of 27,5% of gross remuneration or taxable income (the higher) are tax deductible subject to an annual limit of R350 000. For employees who also have a pension/ provident fund, the total retirement funding may not exceed the said 27,5% or R350 000 for tax deduction purposes.
Income tax and capital gains tax are not applicable to the investment return in the Retirement Annuity (RA) resulting in a bigger lump sum on retirement.
Upon retirement or exiting the RA at age 55, lump sum benefits are taxed on a favourable basis according to the SARS sliding scale with a portion being tax-free.
Who can benefit from a Retirement Annuity?
Self-employed persons
Employees with no corporate pension fund
Employees with a corporate pension fund who wish to save extra for retirement
Benefit from a Tax-Free Investment Account
A tax-free investment account may be utilised to further supplement retirement funding or to save for shorter term lifestyle events.
There is no tax on income or interest, no dividend tax and no capital gains tax.
You can choose from a wide selection of bank account products or equity funds depending on your risk profile and needs. You can also invest for minor children.
An investment of a maximum of R33 000 per person per annum is allowed subject to a R500 000 lifetime limit.
The TFSA investment of R33 000 per annum is allowed in addition to the normal interest exemption which currently stands at R23 800 for persons under 65.
Time to Discuss options ? Give me a call Warren Basel on 0824905182 or email warrenb@oraclebrokers.com
