FINANCIAL FITNESS BY JESSIE TAYLOR
Tax season is here! Here are 6 possible deductions you can claim
M
ore than R1.4-billion is collected by the South African Revenue Service (SARS) every year, and of that almost 40% is paid by individuals under their personal income tax.
deductions that apply to you could see you losing money.
But there are several deductions that individual taxpayers can apply for, which could reduce the amount of tax they owe or help them recoup some of the expenses incurred during the tax year. The tax season has officially opened, and while the details around tax payments can be daunting for many, failing to claim
RETIREMENT SAVINGS If you pay into a pension, provident or retirement annuity fund, you are eligible for a tax deduction of up to 27.5% of your annual income. This is limited to a maximum of the amount contributed and the deduction is capped at R 350 000 per year.
Here are some of the tax deductions you can claim when completing your return this year:
52 | Public Sector Leaders | July 2022
If you’re putting away retirement savings, the amount is deducted from your salary before tax, lowering the amount of remuneration taxed by SARS. Your savings is most likely done through your employer and should be reflected on your IRP5 form. However, if you have additional contributions or pay into a retirement annuity, ensure that you are lodging the paperwork (including your proof of contributions and contributions certificate) with SARS.
