As we approach the end of the tax year (28th February) it is important to remember to take advantage of the incentives government have put in to place to help minimise your tax liability.

Government currently allows taxpayers to make a pre-tax contribution up to 27.5% (up to a limit of R350, 000) of their taxable income. This is an excellent way of minimising your tax liability. By topping up your retirement annuity contributions you can save on taxes as the table below illustrates –

Don’t forget you can also contribute an annual amount of R33, 000 up to a lifetime amount of R500, 000 into a tax free investment. With tax free investments there is no interest, dividends or capital gains tax charged on the investment.

Currently government levies a 20% tax on Dividends withholding tax. By using a tax free investment you are able to save on paying this tax. The Marriott Dividend Growth Fund was recently voted the top equity fund over the past 10 years. This fund’s primary objective is to deliver an acceptable dividend yield with long term growth of income and capital.

The Marriott Dividend Growth Fund attempts to generate a reliable income through its investment into reliable dividend paying companies, which are able to consistently grow their dividends to investors. Below is an illustration of how Johnson & Johnson and Mr Price have grown their distributions year on year. Marriott’s approach to investing is to generate an income for its investors regardless of the economic conditions or market volatility.

By incorporating the Marriott Dividend Growth fund into your tax free investment you are able to re-invest all the dividends without any tax being levied. This is a great way to build up a future income stream. Please take a moment to read the attached article by Laura Du Preez which was recently published in the Sunday Times regarding the Marriott Dividend Growth Fund and Marriott’s approach to investing for income.

Please feel free to contact Kevin or Greg on 041 373 0601 should you wish to make use of your allowances before the end of the February.

Happy New Year to all our clients and friends! We hope and pray that 2018 will be a year filled with peace, happiness and good health.

Our offices opened on Monday 8th January 2018. Greg, Leonie and Kevin look forward to seeing you in the New Year. If you are in the area please pop in and say “hello!”

Retirement Season

The financial year end is just around the corner.  You may wish consider increasing your retirement annuity debit orders or making lump-sum contributions to your existing retirement annuities.

Retirement annuities are a great way to save for retirement and for reducing your annual tax payments.  Here are some of the benefits:

• Contributions are tax-deductible within certain limits.
• There is no income or capital gains tax applicable during the term of the investment.
• Dividends tax does not apply to Retirement annuities
• Unclaimed or disallowed contributions may be deducted on retirement.
• At retirement, the remaining value (minimum two-thirds) can be transferred to an               annuity to provide a regular monthly income in retirement.

Please contact us early if you would like to add to your existing retirement annuities as there is always a logjam towards the end of February.