You are left with just February to update your financial year ending 28 of February. The tax law allows you to invest into your RA up to 27.5 percent of your taxable income. If you are employed you can max up by depositing extra funds into your RA ie balance of the amount your work place is deducting and pay into your pension or provident fund. In real terms you allowed to invest R350 000 max into your RA incl pension fund which is tax deductible. You need your IRP5 from your employer and retirement annuity certificate when you do your tax returns together with your medical certificate
Running own business
Retirement annuity is one of best way to manage your taxes and create source of income when you no longer work as SARS may even pay you back some monies or reduces your income tax.
When you do retire
You can get 500 000.00 lump sum tax free and the balance will be paid monthly and do remember tax comes alive as you get your monthly pay at 36 percent. This is the income which will fund your livelihood when you no longer work. 36 percent RA tax will be affected by your other incomes such as royalties and rental income ir dividends to a maximum of personal income tax of 45 percent
Tax free investment
You have up to 500 000.00 to invest in a tax free acc in your lifetime tax free. ...can be 34 000.00 per year or 3000 about pm. This also can add onto your retirement income. It can be also done for kids for varsity fees or first house first car or just to kick start your child future. You can also jnvest for uour spouse as is allowed per SA ID number