Geshy Singh
The tax deadline for March 1, 2016 to February 28, 2017 is on the last day of this month. Deposits should reflect in the respective institute’s accounts by February 28, 2017 for tax-free saving accounts and Retirement Annuities.
Investment instructions, proof of payment and other supporting documents may have an extended deadline and this could vary from each company, so it’s best to contact them or your planner directly for confirmation.
Remember for all non-retirement funding income e.g. bonuses, freelance, or commission remuneration etc. you may claim a tax deduction, which has increased from the 2015/2016 rate of 15 percent to the 2016/2017 rate of 27 percent capped at the greater of R350 000 per annum. Business owners particularly are encouraged to take advantage of this opportunity.
Your accountant will easily be able to see what’s the maximum you can qualify for and pass this information to your planner to set it up for you provided you act fast.
Some of the major reasons that the increase was introduced is to encourage individuals to save more towards old age and retirement, as firstly the government is not able support retirees fully assuming they qualify to begin with and secondly, too many people are forced to work beyond retirement years due to insufficient planning and that’s assuming their health permits.
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