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TaxTim says: 14 August 2012 at 15:05 I wrote a blog awhile back about the benefits of doing something purely for tax purposes vs the actual cash consequences - https://taxtim.com/blog/claim-it-back-from-tax-the-fact-behind-the-fiction There are a few ways to reduce your tax burden: Retirement Annuity Policy; Pension Fund; Income Protection; Medical Aid contributions and expenditures; Donations All of these are allowable deductions, but will result in you losing cash only to get a small percentage back as a refund. Unless you need a policy or always intend to make donations then you would actually be worse off cash wise than by not having them. To guarantee a refund from SARS, you should rather have a medical aid that you pay for personally than specific medical expenses, you get a bigger tax break for medical aid contributions. Salaried employees are limited in their deductions and things allowed to claim for tax purposes. It all depends on what you contribute to any of the above. My advice, rather get a small refund from SARS at year end than take out policies, which you may not need and result in you paying each month, just to get a slightly larger refund at year end. |
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