Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
File your Tax Return online with TaxTim

  Tax Done in 20 Mins or Less
  Maximise your Refund and find new Deductions
  Simple and Easy. No more SARS stress

Start now

Try Tim Now

What are the allowable retirement annuity deductions?

Posted 29 January 2013 under Tax Questions

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
With regards to current year dedcutable amounts allowed, what is the 'amount b/f from previous year' and 'amount c/f to following year' (how are they calculated on a tax assessment?)

This entry was posted in Tax Questions and tagged , , , . Bookmark the permalink.

TaxTimTaxTim says:
29 January 2013 at 20:38

You are allowed to carry forward R1 800 of RA deductions from previous years that were not allowed. RA deductions are calculated at the greater of 15% or R1 750 of Non-Retirement-Funding-Employment-Income.

So any amounts not allowed will just be carried forward each year until used up.

Zane says:
30 January 2013 at 8:14

Thanks for the response.
I know about the 15% rule and the allowable R1800 that can be used from the previous year.
On my assessment statement, they refer to the above-mentioned amounts, but I don't know specifically how the brought forward or carried forward amounts are determined?

TaxTimTaxTim says:
30 January 2013 at 16:29

If for instance you were limited to an amount of R15 000 as a RA deduction in the previous year, but in fact you spent R20 000 in contributions then remaining R5000 would be carried forward to the current year of which R1800 can be used if you have not used up your limit in the current year, this will continue on year by year until the amount gets used up.

Zane says:
30 January 2013 at 16:42

Thanks very much for your feedback, this is more or less how I understood it.

The way I understand it though doesn't help me understand how SARS calculates it.
They have figures that I cannot make any sense of, no matter what I try and look at in my
past tax forms and allowable deductions.

It is purely the CURRENT YEAR figures I cannot make sense of, all the rest I understand.

Unfortunately, I need to make an accurate calculation of my allowable deductions based on my GNRFI figure (which is an enigma in itself, since my own company doesn't even have a clue how they calculate this figure!). It could mean I am thousands out on my tax payments.

Thanks so much for your assistance, I will have to dig further on the subject.

Best regards

Get Tax Deadline Reminders, News and Tips

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories

Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →