Do you understand the difference between the “27.5% of remuneration or 27.5% of taxable income” rule?
Tony de Wijn of Softbyte Computers in Durban kindly offered subscribers a gratis programme which you can use to show clients exactly how much SARS will contribute to their retirement provision.
“The new laws regarding the calculation of the allowable deduction for Retirement Fund contributions are much more complicated than they first appeared when they were announced in March 2017. Determining what amounts can be included in ‘remuneration’ and what amounts make up ‘taxable income’ is vitally important if you want to work out the 27.5% limit correctly.
This new Softbyte Computers “RF Advantage” program explains how to arrive at the correct amounts and shows exactly what portion of any retirement funding contributions will be paid by SARS. In many cases SARS will “pay” over 40% of contributions for the taxpayer.
The calculator’s on-screen HELP and the set of short video tax lectures, accessible on-screen, will explain everything you ever wanted to know about the new Retirement Fund contribution laws and the huge tax and financial benefits associated with such contributions.
Please click here to read more and download the app.