Page 12 - GA Maclachlan Tax Guide 2024

DEDUCTIONS

Contributions to pension, provident and retirement annuity funds
With effect 1 March 2016, the tax deduction calculation for the three different
funds, pension, provident and retirement annuity funds are identical� The
deduction will be limited to:
Limit of
27,5% of the greater of
R350 000 per year
‘taxable income’ (excluding any lump ‘remuneration’ (excluding
sum benefits or severance benefits) any lump sum benefits or
but before the donations deduction severance benefits)

The above deduction is however limited to taxable income before this deduction
and before any taxable capital gain� This deduction can therefore not create an
assessed loss�
Excess contributions not allowed as deductions are carried forward to the
following year of assessment� Contributions made by employers on behalf of
employees would be a taxable fringe benefit in the hands of the employees
but will also be regarded as a contribution made by the employee, therefore
deductible in the hands of the employee subject to the above limitations�
Medical and disability expenses
All taxpayers are entitled to a monthly “tax rebate” (i�e� credit) in respect of any
medical scheme contributions made for the benefit of themselves and their
dependants as follows:
2023 2024 2025
Taxpayer R347 R364 R364
First dependant R347 R364 R364
Per additional dependant R234 R246 R246

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