FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


RA contributions - tax benefits?

Posted 10 February 2014

I have a sole prop who earns R3m per annum. To reduce his PAYE I have suggested he takes out an RA.
What is the maximum he can contribute for Feb 2014 so as to maximise his tax position.

TaxTim TaxTim says:
10 February 2014 at 21:35

For retirement annuity fund contributions the limit is 15% of gross non-retirement-funding-employment income which essentially is all the income earned which is not allocated to a pension fund or provident fund. For a sole prop it will be all the income he has earned. You can take out an RA for February for the full amount in one contribution.

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



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.