What is the Retirement Annuity Fund contribution deduction limited to?

Taxable income before RAF deduction is R100 000 per annum. RAF contributions are R1200 per annum. (Is the RAF deduction limited to actual RAF contributions?) Please advise what RAF deduction I can used in my tax calculation?

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.

TaxTim TaxTim says:
4 October 2012 at 20:50

RAF is limited to the greater of 15% of your salary or R1 750 (assuming no pension fund), however these are always limited to actual contributions. So in your case this would be limited to R1 200 *12 = R14 400. Assuming you do not contribute to a pension fund then the figure you would use for the calculation would be the actual salary amount. However it would appear from your figures that you will be limited to the R14 400.

Do your Tax Return in 20 minutes or less!

TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.