Brilliant Synergy - Tax Savings Tip Alert, But Do Hustle!

Allow us proactive synergy for your financial benefit right now! 

Synergy is the bonus that is achieved when things work together harmonioulsy. 

Why not act immediately and take smooth advantage of the provisions of Section 11F of the Income Tax Act?

Here is how: Section 11F stipulates the following: 

You are entitled to a deduction, under section 11F, of contributions to any pension fund, provident fund or retirement annuity fund. The contributions that may be claimed as a deduction in the current year of assessment are limited to the lesser of:

• R350 000;
• 27,5% of the higher of –
  • remuneration; or
  • taxable income; or
  • taxable income of that person before –
    • including any taxable capital gain.

The remuneration referred to is remuneration for employees’ tax purposes, but excluding retirement lump sums and severance benefits. The taxable income referred to excludes retirement lump sums and severance benefits, and is the taxable income before the deduction of qualifying retirement fund contributions, qualifying foreign tax credits [section 6quat(1C)] and bona fide donations (section 18A).

Contributions made in prior years that were not allowed as a deduction in those years will be carried forward to the current year of assessment unless they had been deducted from a retirement fund lump sum or withdrawal benefit, or set off against a compulsory annuity. Arrear contributions simply get added to the current year’s contributions and treated in the same manner.

The limits apply to the sum of all contributions made to pension funds, provident funds and retirement annuity funds. The deduction may be set off against non-trade income such as interest.

The above provision means you are in most probability eligible to take full advantage of this top tax tip, which means you may just as well save paying tax by saving a portion of your savings swiftly into your Retirement Annuity.

The deadline for benefitting from this is closer than you think! In fact, you have to act by no later than close of business, February 28th!

I like to encourage people to realise that any action is a good action if it's proactive and there is positive intent behind it. 

So, for brilliant synergy to your advantage, contact us now to arrange a quick consultation to assist in a calculation to establish how you can benefit from this Tax Saving Tip! Because we don't do drama, we do business.

High Five!

Your #TaxDivas