Although we may still be reviewing the details of finance minister Tito Mboweni’s budget and what it means for our finances, it is important to remember that February 28 is the end of the tax year for individuals and trusts. This is the time to review your affairs to ensure they are optimally structured. Make sure that you have topped up your retirement fund An amount equal to 27.5% of taxable income, limited to R350,000 per year, may be deducted from your income in respect of contributions towards retirement funds. (Retirement funds include provident, pension and retirement annuity funds.) Contributions towards retirement funds are incredibly beneficial as they provide for retirement whilst saving tax at the same time. The tax deduction you receive depends on your marginal tax rate. For example, if your marginal tax rate is 45% and you contribute R100,000 to a retirement fund, your tax will reduce by R45,000. The deduction works on a “use it or lose it” basis. However, over contrib...

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