Bluecare Insurance Brokers

Deductions allowed from your taxable Income

Retirement Annuity Deduction

Retirement annuities are one of your most favourable vehicles for saving for your Retirement.
The reason being that you can deduct a portion of your contributions from your tax payable. That means that your average citizen that receives a salary will also receive moeny back from SARS.
The amount you claim back might seem small, but by reinvesting it from an early stage back into your retirement provisons can make a huge difference on the amount you have available for retirement.
If you do not reinvest it you can use it for that credit debt who charges you the highest intersest rate.

The following deductions are allowed for retirement annuities

Maximum annual tax deductible contribution is the greater of:
15% of (taxable non-retirement funding income – assessed tax losses); or
R3 500 less deductible pension fund contributions; or
R1 750.

Pension and Provident Fund Contributions Deductions

When you are a employer you can deduct the following amount from your tax liability.

10% of all approved remuneration for employees pension and provident funds combined
In practice up to 20% is allowed but higher limits can be allowed if justifiable.

If you are a medium plus orginisation, pension or provident fund Scheme is recomended. It will encourage your employees to stay longer in your organisation.