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Great Tax Savings

Turn your tax return into a challenge. You’ll be surprised to see how much you can keep in your pocket rather than giving to the Tax Man!

Get Great Tax Savings

Turn your tax return into a challenge. You’ll be surprised to see how much you can keep in your pocket rather than giving to the Tax Man!Money in your pocket

The best way to do this is through Retirement Annuities. The Tax Man actually rewards us for contributing to our own retirement plans. This doesn’t happen often, so use it to your best advantage.

The deduction is limited to the actual contribution you make, so make sure you are taking full advantage of this benefit. To check if you are taking full advantage Contact MST before end February!

Tax Savings Every Year

Every year you are entitled to the following tax deductions on your contributions to your retirement fund:

The greater of:

  • R1 750, or
  • R3 500 less deductible pension fund contributions, or
  • 15% of non-retirement funding income.

Actions to Take Before the End of February:

  1. If you have a company pension fund, make sure you have a retirement annuity of at least R150 per month.
  2. If you are on a provident fund, make sure you are contributing the maximum you are allowed – 15% of your income. This way you get 40% of your contributions back and you are saving for your retirement.
  3. If you are self-employed OR on a remuneration where you receive no retirement benefits, you can also contribute up to 15% of your income and get 40% back!
  4. If you are not contributing the full 15%, then take advantage of the 40% saving by contributing a lump sum in to your retirement plan BEFORE the end of February. 40% - that’s a better return than you’ll get from the stock exchange and you don’t pay capital gains tax on the growth!

Tax Free Benefits Increases

The tax free portion of the lump sum payout has been increased from R120,000 to R300,000! From 1 October 2007 the tax benefits were increased to:

  • First R300,000 is tax-free;
  • R 300,001 to R600,000 – tax rate of 18%;
  • R 600,001 to R900,000 – tax rate of 27%;
  • R 900,001 upwards – tax rate of 36%

Save money on your tax this valentines dayAs you can see there are lots of reasons to love the tax man this year. But you need to take advantage of these beneftis AND you need to take action before the end of February!

Why give your money to the tax man when you can keep it for yourself? Contact MST today, and sort out your tax before the taxman sorts out you!

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