Around this time of the year, we would like to remind you to consider topping up your retirement annuity fund, or contribute to a tax-free savings account. It's perfectly legal. Save money for yourself, instead of giving to the taxman. Such tax savings can amount to tens of thousands of Rands. Retirement Annuity According to the current legislation, you may contribute up to 27.5% of your taxable income to a retirement annuity fund and enjoy tax deductions. As 28 February is the end of the tax year, you must calculate and pay the additional amount to your retirement annuity prior to this date, in order to qualify for tax deductions and tax refunds. Below is an example of topping up your retirement annuity: Mr Mabasa has a monthly salary of R50,000. In December he received a bonus of R100,000. Every month he contributes R3,000 to a personal retirement annuity fund. His annual income is then R50,000*12 + R100,000 = R700,000. The maximum tax-deductible contribution to retirement annuity is R700,000 * 27.5% = R192,500. Over the year he has contributed the following to a retirement annuity fund: R3,000 * 12 = R36,000 The additional amount he may top up in his retirement annuity (RA) is R192,500 - R36,000 = R156,500 He can look to get a tax refund of R192,500 * 39% = R75,075. Attached is a document from Allan Gray summarising the differences between an RA and a tax-free investment. minimise-your-taxable-income_maximise-your-tax-savings---ra_tfi.pdf Speak to your Financial Advisor if you would like to exercise one of the two options, or email invest@daberistic.com.
0 Comments
National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April 2018. Your short-term insurance premium is subject to VAT and will be adjusted. The new premium will be communicated to before your April debit order collection and below is some of FAQ:
General
Premium collection
Policy Amendments
For any queries regarding changes to your insurance, please contact Jan or Po-Lin in our Short Term department shortterm@daberistic.com tel no: (011) 658 – 1333 Source: Momentum What is it? A Medical Scheme Fees Tax Credit (also known as an “MTC”) is a rebate which reduces the normal tax a person pays. This rebate is non-refundable and any portion that is not allowed in the current year can’t be carried over to the next year of assessment. It applies for years of assessment starting on or after 1 March 2012 (from the 2013 year of assessment). Who is it for? The MTC effectively replaced part of the tax deduction that was specifically allowed for medical scheme contributions, and applies to fees paid by a taxpayer to a registered medical scheme (or similar registered scheme outside South Africa) for that taxpayer and his or her "dependants" (as defined in the Medical Schemes Act). This MTC seeks to bring about greater fairness and help achieve greater equality in the treatment of medical expenses across all income groups. The MTC is a fixed monthly amount which increases according to the number of dependants: How does it work?
The MTC will effectively impact both the employer and the employee. This credit must be taken into account by the employer when calculating the amount of Employees’ Tax to be deducted from the employees’ remuneration. Individuals who have not had their MTC taken into account by an employer (for example, an individual who is retired and receives a pension; or an individual who is self-employed) can claim the MTC on assessment by submission of an annual income tax return. If you need assistance with getting your medical aid tax certificate please contact Namhla in our Health department, email health@daberistic.com , tel (011)658-1333 Source: Sars One has to appreciate that it had to be a hard-balancing act for the Minister, however, many are concerned that these higher taxes may hurt the already weak economic environment, which will directly impact households. Radical economic transformation, inclusive growth and equality were certainly an important feature of Minister Pravin Gordhan’s budget speech yesterday afternoon. The tone of the budget speech was very redistributive and echoed the President’s State of the Nation address a few weeks ago. It, therefore, came as no surprise that the Minister sidestepped the controversial issue of a VAT increase and opted to look to high-income earners to help raise an additional R28 billion. In terms of the progressive tax system, it makes sense to have those who earn more, pay more but there are some concerns that there could still be a risk to growth from the second-round of effects of these increased taxes. Revenue lagged behind the economy, which subsequently lead to an R30 billion shortfall by comparison with the budget estimate a year ago.The impact of a weak economic environment resulted in the shortfall experienced mainly in personal income tax, value-added tax and customs duties. Global growth prospects are looking better, which means that South Africa should benefit from the overall improved outlook, however, the 1.3% domestic growth expectation is still dependent on the implementation of reforms and barring any negative developments on the political front. From a revenue generation perspective, the usual suspects were targeted - being sin taxes and an increase in the fuel levy. Sugar tax does seem to be an inevitability but details need to be finalised. The implementation of the proposed carbon tax has also been kicked further down the road. From a rating agencies perspective, there were some positives and negatives. The Minister stayed on the fiscal consolidation course, as the pace of consolidation was unchanged. However, the budget did disappoint on the reform agenda especially regarding state-owned entities. Written: Tumisho Grater Source: Novare The SARS pocket tax guide has been developed to provide a synopsis of the most important tax, duty and levy related information for 2017/18.
Click here to download For any of your Tax or Vat queries please contact Su-Chin or Su-Lan, email finance@daberistic.com, tel 011 658 1333 . Source: SARS Discovery Vitality encouraged by the revised sugar tax design announced by Finance Minister Pravin Gordhan in his 2017 Budget Speech. In response to the proposed sugar tax, Dr Craig Nossel, Head of Vitality Wellness said: “We believe that action is required to reduce the intake of sugary drinks, and support the proposed sugar tax. From a health point of view, it is excellent news that sugar content will remain the base on which the tax is applied – this encourages reformulation and the availability of drinks with a lower sugar content. We are also pleased to hear that some of the revenue generated from the proposed tax will be used to support health-promotion programmes aimed at non-communicable diseases. We have much to do as South Africans to combat the increasing prevalence of obesity in our country, and the sugar tax is a step in the right direction.” There are a number of reasons Discovery Vitality supports the Government’s proposed introduction of a sugar tax. In South Africa, obesity is ranked as one of the top five risk factors for early death, and years lived with disabilities[i]. Excess sugar consumption is clearly linked to obesity[ii], which is the number one risk factor for chronic diseases of lifestyle, also known as non-communicable diseases (NCDs), like diabetes and heart disease. It is estimated that NCD-related deaths globally will outnumber deaths from communicable, maternal, and perinatal deaths by 2030. South Africans are among the top 10 consumers of sugary drinks in the world[iii]. Studies also show that we continue to increase our consumption of sugary drinks: A study on Food consumption changes in South Africa since 1994’[iv] shows that the total intake of sugary drinks – carbonated and fruit juice – increased by 68.9% between 1999 and 2012. Research shows that drinking too many sugary beverages leads to an increased risk for obesity, particularly concerning for children and adolescents. This is because sugary drinks are a significant source of added sugar but do not make you full. Generally, people do not eat less to compensate for the extra calories they drink[v]. Obesity is rising Between 1980 and 2008, the prevalence of obesity worldwide doubled. With almost 40% of women and 11% of men classified as obese[vi], South Africa has the highest obesity rate in Sub-Saharan Africa. Rising obesity rates, which evidence demonstrates is the key cause of the pandemic of NCDs, are mainly caused by changes in our diet, work and leisure time. Specific drivers include energy-dense, nutrient-poor diets, physical inactivity, large portion sizes and irresponsible food advertising. Obese individuals incur 30% higher medical costs than their counterparts with a healthy weight Research published in the South African Medical Journal on the relationship between levels of obesity and medical expenses[vii] among South Africans on a medical scheme show that obesity is strongly associated with significantly increased healthcare expenditure. Severe obesity, this study indicated, increased healthcare expenditure by R4 425 for each person, split between inpatient and outpatient care. Recent Discovery Vitality research gathered from HealthyFood Benefit data, which specifically looked at the impact of sugar purchasing (specifically from sugary drinks) on healthcare costs, supports the findings of the medical scheme study. The analysis showed that an increase in sugar purchasing (from sugary drinks) was associated with a 4.1% increase in healthcare costs over a 3-year period from 2014 to 2016. The research also showed that members who started off consuming a greater amount of sugar had healthcare costs that were 2.9% higher than for the rest of the members by the end of the period. Cooperative efforts are needed to ensure policy changes are effective A multi-pronged approach is required to achieve a change in population behaviour and health. Discovery Vitality has gathered a significant amount of scientific and anecdotal evidence over the last twenty years, which points to the successful application of behavioural economics, and the power of education and wellness intervention programmes. The HealthyFood Benefit, which offers members up to 25% cash back on a range of healthy foods (specifically selected to address high risk dietary practices that are associated with NCDs including diabetes, high blood pressure and high cholesterol), is one such example. Over time, Discovery Vitality has found that incentivising members to make healthier choices positively influences their purchasing behaviour; an increase in the purchasing of fruit, vegetables, and whole-grain foods, and a reduction in the purchasing of high-sugar, high-salt, processed, and fried foods[ Apply for your Vitality or the Healthy food benefit on Vitality contact Namhla in our Health, email health@daberistic.com, tel (011)658-1333 Source: Discovery With this year’s National Budget, as announced by Minister Pravin Gordhan on Wednesday 22 February 2017, the following fast facts as it relates to the healthcare industry are highlighted for your attention
Source: Resomed |
AuthorKevin Yeh Archives
January 2025
Categories
All
|