Last chance to save tax

The current tax saving season is rapidly drawing to a close and saving on tax is easy. By topping up contributions to your retirement annuity policy before the end of February you can save substantially on your eventual tax bill.

It is also an opportunity to take advantage of the annual tax free savings account allowance.

Remember to check if you are taking advantage of the 27.5% of income deduction you can save tax through retirement fund contributions; you could save as much as 45% of such contributions in tax.

Even if you have a retirement annuity and you are a member of a company retirement fund, check to see that your overall contributions take full advantage of the 27.5% of income (max R350 000) annual tax-deductible limit. If they don’t, please contact us as soon as possible.

Currently, you can invest up to R36 000 per financial year towards a lifetime total of R500 000 in Tax-Free Savings Accounts and you have the choice between investing a lump-sum amount or monthly contributions. Any growth you earn on this investment will not be subject to tax.

Kindly note that our shut off time for processing retirement annuity and tax-free savings documents as well as payments is noon on Friday 23 February.

Please contact your Maximus adviser or any one of our admin staff for advice or assistance. Our main board number is 011 656 2910.

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