Top up your RA & save on your tax
Did you know you can claim a tax deduction for the money you invest into your retirement annuity (RA)? That's because the money you invest in your RA is deducted from your income before your tax is calculated.
We're all looking for a great deal and value for money. But Black Friday or Cyber Monday is nothing compared to the real value and discount of the proverbial Tax Thursday – that's the name we're giving the last day of the current tax year, 29 February 2024.
Invest a minimum of R2 500 into your RA before Tax Thursday on 29 February 2024 and maximise your tax benefits. Speak to a financial adviser to find out how.
What is the tax benefit of an RA?
For every rand you put into your retirement annuity, you get something back from the tax man when you submit your tax return. What you get back is directly related to your income tax rate. Here's an example.
Invest an additional once-off amount of R30 000 into your RA.
You pay an income tax rate of 36%.
You get R360 back for every
R1 000 you invest!
That's R10 800 back in your pocket – more than a third of your initial investment.
Now that's a discount that beats Black Friday or Cyber Monday!