The question most people ask is how the National Budget Speech affects them.
For one thing income tax for individuals will go up by 1%.
Does this mean you are going to pay more tax? Yes.
However there is a simple solution to overcome that. An increase in retirement savings contribution will give more of a deduction against taxable income. Taxpayers could possibly see a decrease in tax payable to SARS by increasing their retirement savings, provided that consumers are maximising on the 15% deduction allowed against non-retirement savings income.
A tax free savings investment was introduced that allows a consumer to invest a maximum of R 30 000 per year and a maximum contribution of R 500 000 per life time, with a minimum lump sum of R 5000 and a monthly contribution of R 500 per month. This allows customers to invest and not pay tax on the growth of the investment. Clients can also access their investment anytime with no cost attached. Big thumbs up to Minister Nene “Madam Speaker”. You can find all the details you need by following this hyperlink: STANLIB Tax Free Savings Solution:
http://www.stanlib.com/newsatstanlib/Documents/STANLIB_Tax-Free_Savings_Account.pdf
Minister Nene has announced changes to the way income protection policies will be treated. Income Protection policy holders who make a claim, will receive their salary without having to pay tax on the benefit. However contributions will no longer be allowed to be claimed on the Income tax return.
The 2015/2016 tax year of assessment sees medical aid tax credits increasing to R 270 per month for the main member and first dependant - and R 181 for additional dependant(s). This is another deduction against the tax payable for those who are members of a Medical Aid Scheme.
The question you may be asking is should I be ignoring the above mentioned facts?
The simple answer is no. The way forward would be to talk to me about taking home more of what you earn and paying less tax.
Feel free to share this with people, colleagues, friends & family and also remember that I’m always available to you for any queries you may have.
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For one thing income tax for individuals will go up by 1%.
Does this mean you are going to pay more tax? Yes.
However there is a simple solution to overcome that. An increase in retirement savings contribution will give more of a deduction against taxable income. Taxpayers could possibly see a decrease in tax payable to SARS by increasing their retirement savings, provided that consumers are maximising on the 15% deduction allowed against non-retirement savings income.
A tax free savings investment was introduced that allows a consumer to invest a maximum of R 30 000 per year and a maximum contribution of R 500 000 per life time, with a minimum lump sum of R 5000 and a monthly contribution of R 500 per month. This allows customers to invest and not pay tax on the growth of the investment. Clients can also access their investment anytime with no cost attached. Big thumbs up to Minister Nene “Madam Speaker”. You can find all the details you need by following this hyperlink: STANLIB Tax Free Savings Solution:
http://www.stanlib.com/newsatstanlib/Documents/STANLIB_Tax-Free_Savings_Account.pdf
Minister Nene has announced changes to the way income protection policies will be treated. Income Protection policy holders who make a claim, will receive their salary without having to pay tax on the benefit. However contributions will no longer be allowed to be claimed on the Income tax return.
The 2015/2016 tax year of assessment sees medical aid tax credits increasing to R 270 per month for the main member and first dependant - and R 181 for additional dependant(s). This is another deduction against the tax payable for those who are members of a Medical Aid Scheme.
The question you may be asking is should I be ignoring the above mentioned facts?
The simple answer is no. The way forward would be to talk to me about taking home more of what you earn and paying less tax.
Feel free to share this with people, colleagues, friends & family and also remember that I’m always available to you for any queries you may have.
Tel +27(31) 514 6112 |
Fax 086 425 8820 |
Email: Tom.Mchunu@liblink.co.zawww.linkedin.com/profile/view?id=208328496&trk=nav_responsive_tab_profile