Lower your tax in 2021
It’s almost the end of the 2021 tax year (1 March 2020 – 28 Feb 2021) which means you have just a few days left reduce your taxes for this year. It may even result in a higher tax refund when you submit your annual tax return with us this tax season.
Here are the four best ways that you can lower your taxes for 2021
1. Contribute to a Retirement Annuity Fund
his is a great way to save for the future which also means you pay less tax every year. If you are already contributing to your retirement, then it may be beneficial to see if you can contribute a little bit extra AND save some tax money.
Try out the TaxTim Refund Calculator and see what would happen to your tax bill should you choose to top up your retirement package for 2021
2. Contribute to a Tax Free Savings Account
a Tax free savings account (TFSA) lets you save up to R36 000 per year and grow your savings without paying tax on any of the growth your money earns. A tax free savings account is therefore an effective way to save for your goals, because any interest, dividends or capital gains from your tax free savings account will be free of tax.
3. Invest in a s12J VCC
You can claim your full investment in a SARS approved “VCC” against your taxable income in the year of investment, and this deduction will become permanent if you remain invested for five years.
4. Donate to charity
You can claim up to 10% of your income for the year by donating to a registered Public Benefit Organisation (PBO). Just remember they do need to be a registered PBO and issue you with a valid s18A certificate in order for you to make a claim. For a full list of SARS approved PBOs, click here.
However you choose to save tax in 2021, Salvo Capital is here to help you every step of the way!
Chat to one of our qualified advisors today 051 401 8200