Retirement Contributions

Retirement Contributions – RA contributions qualify for a tax deduction.  Although you are free to contribute as much as you want, the retirement annuity tax relief is set to a maximum rate of 27,5% of the greater of your taxable income or remuneration into a retirement annuity investment.  This is subject to an annual limit of R350,000.

This 27.5% limit, includes the contributions made by your employer to a pension or provident fund. If you contribute over the limit, SARS keeps a record of the excess contributions and carries them forward to the following tax years.

On retirement, a portion may be taken as a lump sum (currently 1/3) of which R 500 000 is tax-free (cumulative across all retirement funds you may have), the balance of 2/3 must be used to buy an annuity or invest in a living annuity, the proceeds of which are taxable.

Retirement Lump Sum benefits

Need Help With Your Tax?

Book a consultation and let us make your life easier!

    We are friendly, approachable and at the same time offer the highest level of professionalism and client care.

    Let us take away the stress of your annual tax submissions. Get in touch today, we will respond promptly, effectively and accurately to your tax compliance needs.