Retirement funding

You can deduct up to 27.5% of your taxable earnings on contributions to retirement funding.

Therefore, if you have a pension fund and you contribute 15% towards it, you can invest up to 12.5% more into a retirement annuity.

This can be done with a lump sum, adding it to your existing retirement annuity, however, it must be done by the end of February.

Tax-free savings account

Consider investing a lump sum into a tax-free savings account before the end of the year.

With a R36 000 per annum limit, you are able to top up to this amount before the end of February to take full advantage of the allowance.

Capital Gains Tax

If you are disposing of any investments, you could sell some in February using your R40 000 exclusion off the gain in this tax year.

One could then sell again in March taking up your R40 000 exclusion for the new tax year.

Donation tax

If you are considering donating assets up to R200 000 to someone other than your spouse, you should split the donation between February and March.

This way you will take full advantage of the R100 000 per annum exemption.

 

Article credit: https://www.capetalk.co.za/articles/465539/2023-tax-year-take-advantage-of-some-tax-breaks-while-you-still-can?ref=tid:22

END OF THE TAX YEAR – 4 WAYS TO PAY LESS TAX