My income : Living Annuity R3500 p.m. other monthly income R5000 p.m. various other Investment returns
TaxTimsays: 12 February 2014 at 10:42
Based on your current income, you will not pay any tax next year as you are below the threshold for your age and possibly the interest exemption as well resulting in no tax deduction.
However given that parts of your income, may just breach the threshold, if you were to contribute one lump sum to a RAF, you would get the maximum 15% of income deduction for this year and the remainder of the contribution would carry forward to the next tax years. So essentially every year you would get a R1 800 deduction against your income earned.
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