Maximize Your Tax Savings Before the Tax Year Ends

Written By Lance Robert

With the tax year ending soon, there’s no better time to reduce your tax bill by maximizing your contributions to your Retirement Annuity (RA) and topping up your Tax-Free Savings Account (TFSA). Below is a concise overview of how these strategies can benefit you.

 

Retirement Annuities (RA)

  • Tax-Deductible Contributions: Contributions are tax-deductible at up to 27.5% of the greater of your taxable income or remuneration, subject to an annual cap of R350,000, effectively lowering your taxable income.

  • Significant Savings: If you’re in the highest tax bracket of 45%, you could save up to R157,500 in tax by contributing the maximum annual amount of R350,000.

  • Deadline Reminder: Make sure your contributions are topped up before 28 February to maximize these deductions.

 

Tax-Free Savings Account (TFSA)

  • Tax-Free Growth: You can invest up to R36,000 per year in a TFSA, and all interest, dividends, and growth remain tax-free.

  • No Immediate Deduction: While contributions aren’t tax-deductible, the long-term tax-free growth can be substantial.

  • Maximize Your Allowance: Topping up before the end of the tax year ensures you use your full allowance.

 

Act Now

Time is running out to take advantage of these tax-saving opportunities. If you need guidance on making the most of your RA or TFSA, reach out to us at The Robert Group.

Lance Robert
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