Tax is payable, but typically at a lower rate than you would pay if you paid the tax now and saved the after-tax amount. There are three ways in which you get a tax advantage from saving in a retirement fund:Taxpayers who contribute to a retirement fund enjoy a tax deduction up to certain limits. This includes contributions made to a retirement annuity, pension fund and provident fund.
The contributions you can deduct each year are 27.5% of your taxable income or remuneration, whichever is the highest, subject to a limit. For the purposes of calculating your tax deduction for retirement contributions your remuneration includes your salary, overtime pay, allowances, leave pay, bonus, fringe benefits and any gratuities or commission before any deductions.
As a contributor to a retirement annuity , you will be able to claim the tax deduction when you file your income tax return and, if you are a provisional taxpayer, you can reduce your taxable income by the amount you have contributed.If you are a salary earner contributing to an RA, you can ask your employer to adjust your monthly PAYE to take into account of your contributions to an RA.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EXPLAINER | Should I be registered for and paying provisional tax? | BusinessFailing to work out whether you are a provisional taxpayer or not, could prove costly as the South African Revenue Service can penalise you for not paying tax in time. | News24_Business
Source: News24 - 🏆 4. / 80 Read more »
Business Maverick: BOE rate decision set to cap tumultuous week for UK and SunakThe Bank of England is expected to push through yet another increase in interest rates, one of the key events set to shape a turbulent week for the UK economy and Prime Minister Rishi Sunak.
Source: dailymaverick - 🏆 3. / 84 Read more »
Reserve Bank expected to hike rates again | BusinessCentral banks in Africa’s biggest economies are poised to raise interest rates this month to contain sticky inflation and deter a selloff in their assets exacerbated by the collapse of US lender Silicon Valley Bank and stress at Credit Suisse. Keeping up with the Feds RamaphosaMustGo CRmustGO nationalshutdown We need to strike against these ones, they think their job is to hike rates. This Kganyago is acting as the enemy of the people.
Source: News24 - 🏆 4. / 80 Read more »
WATCH: “Not business as usual” in South Africa amid National ShutdownIt's a ghost town in parts of Mzansi today, see below 👇⚠️ StaceyJSbuOnECR NationalShutdown NotBusinessAsUsual
Source: ecr9495 - 🏆 38. / 51 Read more »
National shutdown: Protests spark looting fears, business closures | The Citizen😲WATCH: 🚧🔥 Tensions rise across the country as shops close amidst looting threats during the NationalShutdown. EFFNationalShutdown TheCitizenNews Watch the video 🚨 here BS…
Source: TheCitizen_News - 🏆 6. / 75 Read more »
Business as usual amid EFF protestsCape Town and Nelson Mandela Bay report business as usual as the EFF takes to the streets.
Source: BusinessTechSA - 🏆 24. / 61 Read more »