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Tax year end - Do these three things to reduce your tax liability

by , 12 February 2019
Tax year end - Do these three things to reduce your tax liability
With just 12 days left of the tax year and the budget speech next week, this is the time of year, that you should be evaluating your investments and retirement savings and maxing them out as much as you can.

While many people know they should be saving more for a rainy day and retirement, most of us are not. Using a few tax incentives can assist you a great deal now and years down the line.
Here are three of the easiest methods to reduce your tax liability:
1. Tax payers can deduct retirement fund contributions of up to 27.5% of their income, limited to a total contribution of R350,000 per year. You can make lumpsum contributions and many retirement annuities accept ad-hoc payments.
A tax payer earning over R555,600 contributing an additional amount to their RA will immediately save R39,000 on every R100,000 invested within the above limits.
2. Net off your profit and losses in your stockbroking account.
Most investors aren’t aware of the benefits of culling all the laggards in February, but it allows you to exit losing positions and net off the losses against profits, while rebasing your purchase prices higher to reduce future tax liability.
3. Start a Tax-Free savings account. The most under-utilised tax incentive is the Tax- Free savings account. This is because most people underestimate the compounding ability of the R33,000 maximum contribution per annum.
Investors should also not be saving into a money market account but rather ETFs. Over time the growth achieved will be substantial and all returns and income are tax exempt.
An opportunity to double your money by investing like the rich
When high profile CEOs start buying up company shares, so should you!
Full details of this stock and four others in Francois Joubert’s Invest for Profit 2019 BlueprintFREE DOWNLOAD
Long Term Ideas 
Dischem: Buy below R25.50, short term target R29.50 long term target R37.50
Sasol: Over reaction to trading update. Buy below R390.00. Short term target R460. Long term Target R550.
AB InBev: Buy below R1,000 with a target of R1,500
Richemont: Buy dips below R95. Target R130.00.
Remgro: A break above R210 is needed to open up R230. Buy below R200.00
Coronation: Sentiment still negative. Buy dips below R50.00 for a move back to R80
Shoprite: Sector earnings under pressure. Hold.
Aspen: Bottoming out. Add below R150.00, keep exposure appropriate.
Sygnia: Moving in the right direction. Hold.
MTN: Possible sale of Jumia to reduce debt. Accumulate on below R85.
Glencore: Buy below R52.50.
Naspers: Break out imminent, buy below R3,000. Target R3,800
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The Tax year closes soon, investors looking to lower their tax liability through retirement savings should contact us for the various options we provide. Email invest@protrade.co.za for further information with Retirement Savings in the subject line.

Tax year end - Do these three things to reduce your tax liability
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