With the 2018/2019 tax year coming to an end, we decided to share a few tips on how to maximise your tax refund and get the most out of your allowances with SARS.
1. Medical Credits
Medical schemes are an expensive necessity and we encourage all our clients to maximise this tax refund.
If you are contributing towards a medical scheme, make sure that you log your monthly contributions as well as all medical expenses at point of sale, regardless of whether the expense is covered by your medical aid.
2. Retirement Annuity
Besides the obvious benefit of providing for your future needs, contributing to your pension, provident fund or retirement annuity can reduce your taxable income. Deductions are limited to R350 000 per annum or 27.5% of your total earnings for the year.
Donations are not only a way for South Africans to give back to the community, but also a way to reduce their taxable income by up to 10% when donating to a public benefit organisation. Remember to file your Section 18A certificate as proof.
4. Tax-Free Investments
The name says it all. We recommend that you take advantage of the full R33 000 annual allowance.
5. Foreign Employment Income Exemption
This exemption is applicable for those of you working abroad for a portion of the year, specifically 183 days or more, of which 60 days need to be consecutive. The income earned from foreign employment will be deductible in direct proportion to the number of days spent outside the borders of South Africa.
6. Travel Claim
If you use your vehicle for work purposes, and if you can prove that a portion of your travel expenses are for work purposes, then you can claim a deduction on it. It is important to bear in mind that you will be required to keep an accurate and updated logbook if you are submitting a travel claim. We have included a link to the official SARS logbook for your perusal: SARS LOGBOOK
Should you wish to discuss an effective way to maximise your own tax refund, contact one of our wealth managers who have the skills, expertise and personal focus to help you navigate this process.
Courtesy of Lameez Omarjee, Published on Fin24
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