Finance Minister, Mr. Tito Mboweni, on Wednesday, announced South Africa’s Budget for the fiscal year 2020/2021. The budget set against the backdrop of the fallout from the global pandemic highlighted once again the many challenges facing ordinary South African citizens.
What were the key changes
in the Budget?
An above-inflation increase of 5% in the personal income tax brackets and rebates
Corporate income tax rates reduced to 27%
Excise duties on alcohol and tobacco increased by 8%
Increase of 4% for medical tax credits
To read more about the 2021 Budget please click
on the link to read Allan Gray’s Budget Speech Update. Alternatively, you can
listen to STANLIB’s Chief Economist, Kevin Lings as he unpacks the economic
analysis of the Budget 2021.
Office
re-opening
As from the 1st of March we will be re-opening our offices. We have adapted our offices to ensure that all necessary safety protocols are adhered to. Clients who would like to make an appointment or pop in for a coffee are more than welcome and we look forward to welcoming you back!
” The climb is tough, but the view from the top is worth it.” Vijay Mishra
We trust that you and your families have had a blessed festive season and wish you all the very best for the year ahead. May 2021 bring you good health, peace and all the wonderful things that you wish yourselves! Above all else, we pray that you and your loved ones remain healthy in 2021.
We will re-open on Monday 11th January 2021. Whilst we would love to see all our friends and clients early in the New Year, it would not be prudent to meet each other face-to-face in view of the current upsurge in the Coronavirus. We do not wish to put our friends in any danger, so in the interests of the well-being of all our clients and staff, we plan to operate remotely and are happy to meet on Microsoft Teams or Zoom. The world is changing and as Kenneth Matos, PhD, the Vice President of research at Life Meets Work states: “The secret of crisis management is not good versus bad; it’s preventing the bad from getting worse!”
Welcome to the first
newsletter of 2021. We plan to bring you topical investment news and market
information monthly. We hope that you will find this newsletter informative and
useful and that it will assist you in making informed investment planning and lifestyle
decisions.
We would like to hear from you. If you would like us to discuss any particular investment topic, product or strategy please let us know and we will try to address the subject in a future newsletter.
Retirement Annuities
The financial year end is just around the
corner. You may wish to 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.
Tax-Free Savings are a great way of reducing tax!
Tax-free savings provide South African Investors with an
excellent opportunity to save towards long term goals without having to pay tax
on interest, dividends, and capital gains!
You may invest up to R36 000 per year in tax-free
investments, with a lifetime maximum limit of R500 000. A word of caution!
Investors should not exceed these limits as the South African Revenue Services
will levy a penalty of 40% on any amount above the maximum amounts.
Tax-Free investments are a great way to save for your
children’s education. If you have children or grandchildren, you can give your
family the education they need. With a tax-free investment, you can help give
your family the future they want. No interest tax, no dividends tax, no capital
gains tax- and no exit penalties.
Please contact us early if you would like to add to your existing retirement annuities or invest in a tax-free investment as there is always a logjam towards the end of February.
We wish you all a healthy and happy New year! Stay safe and well!
There has been a dramatic increase in the number of people
in the Metro testing positive for COVID 19. With Nelson Mandela Bay now
entering the peak of the pandemic, and with every person now at risk of
contracting the virus, we have therefore made the decision that our offices
will be closed from Friday 27th November for the remainder of the
year.
We will therefore no longer be meeting face-to-face with any clients until the start of the New Year. Kevin, Leonie and I will continue to work from home and will be available through the various meeting platforms (Zoom, Teams). Our office phones will continue to operate and Kevin or Greg can be reached on their mobile numbers.
We urge all our clients, friends and colleagues to remember to keep a 1.5-metre distance between yourself and the next person, wear a clean cloth mask when you have to go out and to wash your hands regularly.
Stay safe and God bless!
“It is health that is real wealth and not pieces of gold and silver.” Mahatma Gandhi
