The fol­low­ing changes will still go ahead on March 1 next year:

CityPress - - Business -

Tax-free sav­ings

For­tu­nately, the tax-free sav­ings ve­hi­cles will still go ahead. This means peo­ple will be able to invest up to R30 000 a year in tax-free in­vest­ments. This also means no tax will be levied on in­ter­est, div­i­dends or cap­i­tal gains earned in th­ese funds. If you want to save up to R2 500 ev­ery month, make sure the in­vest­ment you se­lect is com­pli­ant with the tax-free sta­tus.

Tax on in­come pro­tec­tion poli­cies

At the mo­ment, em­ploy­ees do not pay tax on the pre­mi­ums their em­ploy­ers pay for dis­abil­ity in­come in­surance and peo­ple get a tax de­duc­tion on pre­mi­ums for in­come pro­tec­tion poli­cies. How­ever, if you claim on th­ese poli­cies, tax is levied on the in­come.

From next year, the tax de­duc­tions on con­tri­bu­tions to in­come pro­tec­tion poli­cies will no longer ap­ply. But if you get a dis­abil­ity in­come ben­e­fit in the fu­ture, you will re­ceive your in­come tax-free.

Op­tion to post­pone re­tire­ment ben­e­fits

You can de­fer get­ting your re­tire­ment ben­e­fits if you don’t need them at the nor­mal re­tire­ment age. This will ben­e­fit peo­ple who con­tinue to work past the nor­mal re­tire­ment age and want to leave their re­tire­ment ben­e­fits to grow.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.