SARS E-Filing 2019 OPEN!

frodob

Well-Known Member
Joined
Feb 21, 2012
Messages
171
During the 2019 assessment period I've contributed too much money towards my retirement. This resulted in an amount of R 26555 being carried-over.
I would like to top-up my retirement annuity for the 2020 assessment period to fully utilize the 27.5% deduction threshold.

Should I subtract the carried forward amount from the top-up amount or can I ignore it and pay the full 27.5% towards the annuity? :)
Yes, subtract the carried over amount. You can of course contribute 27.5% of your 2020 FY income, and the R 26,555.00 will be carried over again, where it will grow tax free.
 

LaraC

Honorary Master
Joined
Mar 11, 2014
Messages
38,661
Yes, subtract the carried over amount. You can of course contribute 27.5% of your 2020 FY income, and the R 26,555.00 will be carried over again, where it will grow tax free.
Awesome, thank you. :)

ps. Are there no penalties in having a carried over amount?
 

frodob

Well-Known Member
Joined
Feb 21, 2012
Messages
171
During the 2019 assessment period I've contributed too much money towards my retirement.
There's no such thing as too much. There's only a limit on the amount you can claim as a tax dedication (i.e., the 27.5%). There's no penalties for carrying over, and when you want to retire, any amount carried over amount can be taken back tax free (as you have already paid tax on this amount). This is in addition to the tax free lump sum one may take at retirement (R 500,000.00).
 

SAguy

Expert Member
Joined
Nov 4, 2013
Messages
3,279
Is anyone still waiting for their refund? Submitted audit documents in October already.
 
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