Why Topping Up Your Retirement Annuity Before 28 February Makes Financial Sense
The 2026 tax year for individual taxpayers is closing on 28 February, and many taxpayers look for legitimate and effective ways to reduce their tax liability while building long-term financial security. One of the most powerful tools available is topping up your retirement annuity (RA) in January or February, before the end of the tax […]
The ‘Big Three’ Tax Worries (Part 3): Property
Rounding up our series on the three main worries for taxpayers, we discuss property. So, you now know how to claim your car expenses on your tax return, and are reasonably confident that you can now manage your share investments without incurring the wrath of SARS. But the one thing that really keeps you awake […]
Long-Term Goals, or Short-Term Gains?
More than a million applications have already been lodged with the South African Revenue Service (SARS) to pull funds out of their savings. Given that this amounts to R21.4 billion, that’s a frightening amount of money for a country that doesn’t have a savings culture. What with more people withdrawing cash under the Two Pot […]
Compensation for losses: Which ‘Hole’ is filled?
Many taxpayers assume that compensation for losses is of a capital nature. It depends… There are no hard and fast rules for determining whether a particular gain is of a capital or a revenue nature. Each case needs to be decided on its own facts. The distinction is important because of the lower effective rate […]
Two retirement pots
Is the proposed two-pot retirement system ‘stirring the pot’ in the retirement fund industry? THE DRAFT tax legislation released by National Treasury on 29 July 2022 contains details of the much anticipated two-pot retirement system. The proposed changes are quite far-reaching although there will also be criticism that the changes do not go far enough. […]
Tax breaks for retirement funding
While there are very few tax breaks for individuals, some huge ones are available for retirement funding Retirement tax breaks in South Africa are designed to incentivise individuals to save for retirement and provide them with tax relief on contributions to retirement funds. The government has implemented various tax incentives over the years to encourage […]
The new SARS solar energy tax credit
The tax credit for individuals installing solar panels is here, for a limited time only. The proposed new law regarding the tax credit available to individuals who install solar panels has been announced. The system will be introduced in the form of a tax credit, as opposed to a tax deduction. This is good news, […]
Tax certificate uploads: How to avoid SARS issues
Check, check, and check again… THE SARS e-filing system has come a long way from its humble beginnings, and it is clear that the tax office is moving ever-closer to a situation whereby the majority of taxpayers will no longer be required to submit a return each year-employers, investment funds, and medical schemes will simply […]
IRP5 not uploaded? Expect significant delays
When an employer’s failure to upload an IRP5 brings SARS to a grinding halt. One of my clients has recently retired—and like all retirees, they went through the whole rigmarole of completing the numerous forms required by their employer retirement fund so that the fund can calculate their lump sum entitlement and monthly pension. Now […]
Fringe benefits provided to employees
The Seventh Schedule to the Income Tax Act lists various benefits that employers may grant to employees which will attract income tax for the employee, and require the employer to also withhold PAYE on the amount of the benefit granted. These provisions act as anti-avoidance measures to avoid employees receiving “masked” remuneration in formats other than […]