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How does retirement annuity help me in regards to tax?

Posted 17 September 2013

How does a retirement annuity help me regarding tax deductions?

TaxTim TaxTim says:
17 September 2013 at 18:39

Retirement Annuity Contributions are allowed to be deducted at a maximum equal to 15% of your gross income, which can therefore reduce your tax payable to SARS.

For example, if your retirement contribution was R40,000 and your gross income was R200,000, you would not be able to claim the whole R40,000 as a deduction, but instead capped at only R30,000 (as this is 15% of your gross income and is the lower of the two figures).

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