Tax year end housekeeping

//Tax year end housekeeping

Tax year end housekeeping

Meet the deadline and save!

While you are still emptying sand out of your costume, and smiling at holiday snaps, it is easy to forget that the tax year end is almost upon us.

This is normally a busy time of year, so we don’t want you to be caught off-guard about certain things that you should be considering before the end of the tax year – don’t forget your financial planner is there to assist you.

Deadline for provisional tax payment

Firstly, for those of you who are provisional tax payers, your second provisional tax payment for the 2014 tax year is due by 28 February 2014.   You are exempt from provisional tax if you

  • Under the age of 65 years, and do not carry on your own business, and your taxable income does not exceed the tax threshold, your interest, foreign dividends and rental income do not exceed R20,000 per annum.
  • Over the age of 65 years, excluding directors of companies and members of CCs, and your taxable income does not exceed R120,000 per annum, provided that such income consists exclusively of remuneration, rental, interest or foreign dividends.

Contribution to RA

Secondly, you may wish to make a lump sum contribution to your Retirement Annuity fund.   Contributions into a Retirement Annuity fund are tax deductible up to certain limits, as follows:

  • 15% of taxable income, other than from retirement funding employment (for example,
    your bonus, commission earned, living annuity income, rental income, etc.);
  • R3,500 less current deductions to a pension fund;
  • R1,750.

If you contribute more than these limits, in terms of current legislation, SARS will allow this excess amount to roll over to the following tax year.

SARS has proposed changes to this legislation with effect from 1 March 2015, whereby taxpayers can deduct up to 27.5% of taxable income, subject to a limit of R350,000 per annum.

Eyes on CGT

Thirdly, this is a good time of year to review your capital gains tax situation.   You may wish
to make some changes to your portfolio, and be able to offset some losses against gains made.   This, however, should be only done in consultation with your financial planner, to ensure that any
changes are in terms of your financial plan.

Please also bear in mind that, if you are buying and selling shares, you ideally need to own a share for a period of three years or longer to avoid be seen as a trader by SARS.


Finally, if you wish to make any donations either to your trust, or to another person, this must be done before 28 February of each year.

Donations between spouses are tax-free, but every taxpayer is entitled to donate up to R100,000 per annum to anybody they wish – this includes your children.   For spouses, they can each donate R100,000 per year, effectively reducing their dutiable estates by R200,000 per year.   However, first discuss this with your financial planner, as it must be taken into account in your financial plan.

As we increasingly feel the stranglehold on our finances as a result of increased living costs, it is
reassuring to know that there are measures we can take to save money without great exertion and with expert advice.

By |2017-07-11T12:21:23+00:00Feb 12, 2014|Tax|0 Comments

About the Author:

Pat is a certified Financial Planner. Pat’s personal experience in wanting peace of mind about her own financial affairs being in the best possible order, drove her to pursue a career in financial planning.The freedom that this gave her, prompted her to help individuals in the same situation.

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