Just a reminder, the tax season closes on the 31st of October 2018. If you have not yet filed your return, you have a few days in which to do so before penalties and interest for late submission and payment kick in. Do not let the struggles of eFiling wear you out. Let a professional tax practitioner help you with your complex or non complex returns.
Here are a few deductions you can claim this tax season:
- Retirement annuity
- Medical Expenses
- Property running expenses, if you have rental income
- Charitable donations
Retirement Annuity contributions:
Remember that SARS can allow you deduction for your RA contributions up to a limit of 27,5% of the greater of your taxable income or remuneration (to a maximum of R350,000 per year). This limit applies to the total contributions you make to any Pension, Provident or Retirement Annuity (RA) fund during the year. The tax deduction will always be limited to the actual contributions you made.
Ensure you have a medical aid certificate from your medical aid provider as support for this tax credit and in order for you to be able to get and claim your monthly tax credits. Most medical aid providers normally send these via email before the tax season starts. If you cannot find these in your inbox, call and ask them to send you one.
Property running expenses:
If you earn rental income, there are certain expenses that you may deduct to arrive at your taxable income. These include, rates, interest on your bond, repairs and maintenance, insurance costs, lease costs, garden services, advertising among others. One thing to watch for is the distinction between general repairs and maintenance vs improvements. Improvements will are a capital expense that would be included in the base cost of the property, to effectively reduce the capital gain (or loss) on the disposal of the property, for capital gains tax purposes.
Donations to charitable organisations:
If you have a gift of giving and love making donations to charitable organisations, you will be pleased to know that any donations given to registered Public Benefit Organisations are tax deductible up to a maximum of 10% of your taxable income (any disallowed donation exceeding the threshold can be carried forward and deducted the following year subject to the same limit). One thing to remember here is that SARS will only allow the deduction if the charity you’re donating to has a PBO number and can issue you with a tax certificate for your donation (Section 18A certificate).
Other deductions you should think about to optimise on your tax:
- Wear and tear on personal assets
- Travel claim
- Home office expenses
- Out of pocket medical expenses
Need help with filing your tax return? Contact us