RA & Salary

V

^^vampire^^

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If i open an RA can I get the company I work for to deposit the money directly for me and have the tax benefit applied monthly (like a company pension/provident fund) or can I only get the tax benefit applied when I submit my annual tax return?

Thanks!
 
Your income can be adjusted on a monthly basis even if you are contributing yourself. You'd need to provide your HR with proof of your contributions and then they are authorised to adjust your monthly income accordingly. Remember that at the end of the day SARS just wants to ensure they are paid what you owe so they will reconcile this all via your return at the end of the year and make you pay in if the calculations have been incorrect.

Employee's Tax

Immediate cash flow advantages can be enjoyed by taxpayers who request their employers to deduct, from monthly income earned, contributions made to a RA. In other words, the RA contributions should be taken into account when the employer calculates the employee’s tax (that is PAYE and SITE) resulting in an increased monthly cash flow.

Taxpayers subject to PAYE and SITE should provide their employers with proof of payments made to RA, so that their employers can make the necessary deductions.
Click to expand...
 
Last edited:
ClintZA said:
Your income can be adjusted on a monthly basis even if you are contributing yourself. You'd need to provide your HR with proof of your contributions and then they are authorised to adjust your monthly income accordingly. Remember that at the end of the day SARS just wants to ensure they are paid what you owe so they will reconcile this all via your return at the end of the year and make you pay in if the calculations have been incorrect.
Click to expand...

Hah! Thought it would be you that would reply :p

Thanks much appreciated, makes my life a lot easier :)
 
Glad OP didn't predict it would be me, cause I read this and I was like "WTF.. I so dont know... let someone answer and help me gain knowledge"
 
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