Tax Year End – February 2021

The tax year-end is fast approaching us and there is still some time to pro-actively manage your current and future tax burden. The Apio Wealth team have jotted down some annual tax benefits available to you.

Retirement Annuity Contributions – Top Up

It’s important to ascertain whether you have maximized your retirement contributions and reduce the tax payable on your gross earnings. If you are not contributing towards a pension or provident fund, it may be a good time to start contributing towards an RA.

Every year you can contribute up to 27.5% of your gross income, capped to R350 000 per year which will count towards your tax deduction. Your gross income will include capital gains, rental income, drawings, or any other form of income.

If you do have surplus funds available, we will happily demonstrate the tax deduction and benefit available to you.

Tax-Free Investments – Top Up

This is a savings account offered by most financial institutions, which allows you to invest up to R36 000 per year in a unit trust, bank savings account, or fixed deposit. You have a lifetime contribution limit for tax-free savings of R500 000 per individual.

The difference between these accounts and other savings is that all returns, interest, dividends and capital gains earned will be free from tax.

If you have managed to maximize your contributions towards your tax-free investment, you can donate up to R100 000 in the tax year to a spouse or family member and help them make a contribution to their own tax-free Investment.

Please contact us should you like to take advantage of this saving as we only have up until the 28th February 2021.

Email your Wealth Manager or to find out more.