Welcome to the New Year!

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 2020 bring you peace, happiness and all the wonderful things that you wish yourselves!

2020 holds exciting opportunities! We have been closed for the festive season and our offices are now back in full swing. We look forward to seeing all our friends, colleagues and clients early in the New Year! If you are in the area please pop in for a cup of coffee and say “hello!”

Minimise your taxable income, maximise your tax savings!

With the end of the tax year (29th February 2020) fast approaching, you are reminded of the opportunity to minimise your tax liability by investing into a retirement annuity and maximise your tax savings by contributing to a retirement annuity or a tax-free investment.

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 – Save for retirement in a tax-efficient way.

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 up to 27.5% of the higher of your remuneration or taxable income, to a maximum of R350, 000.
  • There is no dividend withholding tax, income or capital gains tax applicable on retirement annuities
  • Unclaimed or disallowed contributions may be deducted on retirement.
  • At retirement, the remaining value (minimum two-thirds) may be transferred to an annuity to provide a regular monthly income in retirement.
Tax-Free investments

Tax-Free Savings Accounts provide South African investors with a new opportunity to save towards a specific goal or supplement their retirement savings. As tax-free investments are not subject to income or capital gains tax, they provide a convenient and flexible way to accumulate savings over time.

Investors may currently contribute a maximum of R33 000 per tax year into a tax-free investment, which equates to a maximum debit order of R2 750 per month. There is also a lifetime contribution limit of R500 000. A word of caution! Any amounts contributed in excess of these limits will be subject to 40% tax payable by the investor.

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.

“Behold, I am making all things new.” Revelations 21:5

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