Time Is Running Out to take advantage of SARS’ tax savings
Did you know that Retirement Annuity Fund (RAF) premiums are tax deductible and that SARS will allow you a maximum deduction of 15% of your non-pensionable taxable income?
This means that for a person on a 30% marginal tax rate, an RAF of R1,000 per month will be deductible, meaning that SARS will essentially subsidise R300 of every R1,000 that that person saves towards retirement.
- No tax on investment returns: No Capital Gains Tax is currently payable within a Retirement Annuity Fund.
- Protection against creditors: As proceeds do not form part of an insolvent estate, creditors cannot attach them.
- An RAF offers disciplined saving.
- Estate duty savings: The capitalised value of annuity payments will not be liable for estate duty.
Any adjustments to your current RAF contribution before 28th of February will allow you to qualify for the maximum deduction for the 2010 tax year.
So Act Now and contact us before time runs out.
Should you require any further information, please do not hesitate to contact us.
All material subject to our Legal Disclaimers.