Use your capital gains tax exemption
As an investor, you are granted a R40 000 capital gains tax (CGT) exemption per year in respect of events that trigger a disposal of assets, which includes the sale of unit trusts.
Although it is never ideal to be disinvested if your intention is to invest for the long term, investors may find merit in switching from an invested fund to cash, and then back into an invested fund without attracting CGT provided that the gain is no greater than R40 000. In doing so, you will be able to rebase your investment at a higher base cost, effectively enabling you to earn thistax-free.
Keep in mind, if you have a poor-performing investment that has experienced a capital loss and you wish to take it in another direction, this capital loss is added to the R40 000 annual exemption. This effectively raises the amount of tax-exempt gain you can yield and rebase for strong performing investments while changing strategy on the poor performers.
As a word of warning, investment markets are highly unpredictable and attempting to time the markets is not a good investment strategy. Exiting and re-entering the markets is a risky strategy but can be highly tax-efficient if done consistently over the long term.
Use your tax-free savings account allowance
Although your contributions to a tax-free savings account(TFSA)are not tax deductible, all interest income, capital gains and dividends earned from a TFSA are exempt from tax. Not being taxed on the growth in your TFSA is still a benefit not to be ignored, and now is the perfect time to determine whether a TFSA is appropriate for your personal circumstances.
As a TFSA investor you are currently permitted to contribute up to R33000 per year towards this investment, with a maximum lifetime contribution of R500000.
However, before setting up a TFSA, chat with your financial advisor about how to use it optimally in your portfolio bearing in mind that it is best viewed as a long-term investment. Your income, debt, investment horizon, together with your specific goals, will all play a role in determining the suitability of incorporating a TFSA into your financial plan.
Get certification of your donations
Tax legislation allows you to donate up to 10% of your taxable income to charity on a tax-deductible basis, although it is important to know that this tax deduction is not automatic.
In order to claim a tax deduction, the South African Revenue Service (Sars) requires that a number of strict requirements are met including that the taxpayer be in possession of a Section 18A certificate. Only organisations that have been approved by Sars as a Public Benefit Organisation (PBO) are able to issue Section 18A certificates to donors in respect of bona fide donations made to the organisation.
A bona fide donation is one that is made with no strings attached and therefore cannot be for the benefit of the donor or a person connected to the donor. When doing your eFiling you will need to upload your Section 18A certificate, which needs to include the PBOs reference number, date of receipt of the donation, the name and address of the donor, and the amount or nature of the donation.
To make it easier for taxpayers, Sars has published an up-to-date list of all Section 18A-approved PBOs on its website at http://www.sars.gov.za.
Top up your retirement fund
As an investor in a retirement fund, which includes pension funds, provident funds and retirement annuities (RAs), you are permitted to invest up to 27.5% of your taxable income per year (subject to a maximum of R350000 per year) on a tax-deductible basis.
This is a significant benefit because it effectively allows you to invest with pre-tax money and reduce the amount of tax payable to Sars. If you are currently contributing towards a registered retirement fund but are not making full use of your 27.5% per year tax-deductible allowance, now is the time to consider topping up your retirement funds so as to reduce your overall tax burden.
If you are unsure as to your taxable income, ask your accountant or financial advisor to assist with the calculation bearing in mind that rental income, dividends from real estate investment trusts (Reits), gains derived from realising assets, and interest earned on investments are included in calculating your taxable income.
With new-generation RAs offering complete contribution flexibility, you can choose the most convenient way of making payments into your RA before the end of the tax-year. Bear in mind, however, that Sars requires the application forms to be processed and for the money to reflect in your investment before February 29, 2020, in order to qualify for the tax deduction so be sure to check the administrative deadlines with your financial advisor.
Claim for your Section 12 J investments
Sars provides a tax incentive for individuals to invest in approved venture capital companies (VCCs) under Section 12J of the Income Tax Act.
Current legislation permits you to invest up to R2.5 million towards a Section 12J investment scheme and receive a 100% tax deduction on the contribution, bearing in mind that the investment must be held for a minimum period of five years in order to retain the tax deduction. Disinvestments or withdrawals are, however, subject to capital gains tax from the first rand.
While Section 12J is a great way to reduce your tax liability, it is advisable to do your research before investing in a VCC. Rather than rushing into a Section 12J investment scheme, consider taking advice and/or doing your due diligence to ensure that you select a scheme that meets your needs. Specifically, do your homework in respect of fees, what percentage of capital is being invested, the internal rate of return, fund manager experience and market comparisons.
It is best to approach a Section 12J investment scheme cautiously and not merely to obtain a tax deduction.
Businesses with VCC status are private companies and there is always a risk that you could lose your full investment should the underlying business fail, so dont rush your decision-making.
- Mind uploading - Wikipedia - May 26th, 2020
- Mind uploading | Transhumanism Wiki | Fandom - May 26th, 2020
- Mind Uploading - May 26th, 2020
- What happens if your mind lives for ever on the internet ... - May 26th, 2020
- Mind uploading - RationalWiki - May 26th, 2020
- Mind uploading in fiction - Wikipedia - May 26th, 2020
- The Singularity Is Near: Mind Uploading by 2045? | Live ... - May 26th, 2020
- The Office Creator Greg Daniels on Returning to the Funny TV Business With Space Force and Upload - Variety - May 26th, 2020
- Soona, The Virtual Photoshoot Company Youve Been Dreaming About - Forbes - May 26th, 2020
- Forget Zombies: Its Humans That Make The Walking Dead VR Truly Memorable - UploadVR - May 26th, 2020
- OnePlus 8 Pro: 5 reasons to pick up this fully formed Android [Video] - 9to5Google - May 26th, 2020
- 'The 100': Who Did the Dark Commander Kill? - Heavy.com - May 26th, 2020
- "Rolling - 3,2,1: A take on the Australian Media Industry" - Kalkine Media - May 26th, 2020
- Will We Ever Be Able to Upload Our Brains? - ComputerShopper.com - May 15th, 2020
- AP test-takers report problems submitting online exams, fear they'll have to retake - NBC News - May 15th, 2020
- Instagram Officially Launches Option to Share Instagram Live Broadcasts to IGTV - Social Media Today - May 15th, 2020
- 15 TV shows and hidden gems that might be under your radar - from Netflix's Midnight Gospel to Amazon's Upload - Yahoo News - May 15th, 2020
- Broadband jargon buster - learn the internet lingo before you buy - TechRadar - May 15th, 2020
- You will be seeing a lot of Qualcomm SD768G 5G phones soon - GadgetGuy - May 15th, 2020
- Four things that may delay PF advance - Livemint - May 15th, 2020
- Covidsafe app: how Australias coronavirus contact tracing app works, what it does, downloads and problems - The Guardian - May 15th, 2020
- Our forthcoming shows will be dedicated to the memory of those who have lost their lives Aysha Rau, The Little Theatre, Chennai - Indulgexpress - May 15th, 2020
- How to tell how fast your internet speed is using a free and accurate speed test - Business Insider - Business Insider - May 15th, 2020
- Add Game Of Thrones & Westworld To Your Zoom Calls With HBO Backgrounds - Screen Rant - May 15th, 2020
- Aarogya Setu data only shared with government officials directly involved in COVID-19 interventions - Times Now - May 15th, 2020
- Beat Ways To Learn PLC Programming With The Help Of PLC Training - NewsPatrolling - May 15th, 2020
- Upload Satirizes a Capitalist Heaven - The Atlantic - May 11th, 2020
- Endpoint Security: The New Frontier - Security Today - May 11th, 2020
- Covidsafe app: how to download Australias coronavirus contact tracing app, how it works, what it does and problems - The Guardian - May 11th, 2020
- Why Entrepreneurs Should Choose Insights Over Instincts - The Advocate - May 10th, 2020
- 5 ways to replace stadium atmospheres as football goes behind closed doors - Paddy Power News - May 10th, 2020
- 'I Am Doing My Best' - Teaching Math During the School Closure Crisis - Education Week - May 10th, 2020
- View: The price of Covid freedom may be eternal spying - ETTelecom.com - May 10th, 2020
- How to rent a property during the circuit breaker: Tips for landlords - AsiaOne - May 10th, 2020
- Why Entrepreneurs Should Choose Insights Over Instincts - Entrepreneur - May 9th, 2020
- Free cloud storage: Which providers offer the most space - Android Authority - May 9th, 2020
- The immortalist: Uploading the mind to a computer - BBC News - May 3rd, 2020
- Enid High School seeing adjustment in wake of coronavirus - Enid News & Eagle - May 3rd, 2020
- Here's How Coronavirus Has Impacted Aussie Drug Habits & How Dealers Are Making It Work - Pedestrian TV - May 3rd, 2020
- 5 Traps That Will Kill Online Learning (and Strategies to Avoid Them) - EdSurge - May 3rd, 2020
- How to Be a Good Neighbor Now - The New York Times - May 3rd, 2020
- From Hannah Gadsby's Douglas to The Great: what's new to streaming in Australia in May - The Guardian - May 3rd, 2020
- That Blessed 'Parks And Rec' Reunion Just Aired So Here's A TL;DR Of Everything That Happened - Pedestrian TV - May 3rd, 2020
- Lockdown in Mind, UGC Committee Recommends Starting Admission Process from August 1 - News18 - May 3rd, 2020
- I Lost My Casual Job & It Ended Up Being The Best Thing That Ever Happened For My Career - Pedestrian TV - May 3rd, 2020
- 10 Amazing Tips to Get the Best out of TikTok Mobile App - Dignited - May 3rd, 2020
- Why Our Minds Can't Really Be Uploaded to Computers - Walter Bradley Center for Natural and Artificial Intelligence - April 26th, 2020
- How to edit the caption on a TikTok by reposting it - Business Insider - Business Insider - April 26th, 2020
- The best broadband deals in April 2020 - The Sun - April 26th, 2020
- Everything You Need to Know About Your Smartphone's New COVID-19 Tracker - University of Virginia - April 26th, 2020
- The University of Utah library wants you! to share coronavirus history being made at your house - Salt Lake Tribune - April 26th, 2020
- Fear Over The Job Market Prompted Thousands Of People To Upload Their Rsums Online - Forbes - March 31st, 2020
- This Is How You Actually Make Money on YouTube - Yahoo Finance - March 31st, 2020
- New to Zoom? Here are tips and tricks to make you a pro user - FOX40 - March 31st, 2020
- Meet the artist whose upload is one of our 2020 favourites (so far) - ABC News - March 31st, 2020
- How to Make a Bit of Extra Cash From Your Living Room - OZY - March 31st, 2020
- Shufti Pro donates free ID and biometric face verification to coronavirus frontline organizations - Biometric Update - March 31st, 2020
- 'The dancefloor is a religious experience': the unselfconscious retro joy of the home dance workout - The Guardian - March 31st, 2020
- Half-Life: Alyx Is The Highest Rated PC Game So Far In 2020, According to Metacritic - UploadVR - March 31st, 2020
- The consumers guide to internet speed - Flux Magazine - March 31st, 2020
- Modsy Interior Design Review - The Pros, Cons, and Cost of Modsy - GoodHousekeeping.com - March 31st, 2020
- Westworld: Who Is the Charlotte Hale Host? - Collider.com - March 31st, 2020
- Schools embrace remote learning to beat Covid-19 disruption - Small Business - March 31st, 2020
- Can you see someone's profile picture if they have blocked you on WhatsApp? Here's what you need to know - Times Now - March 31st, 2020
- How the FE sector is adapting to the coronavirus crisis - FE Week - March 31st, 2020
- Valve Talks Half-Life: Alyxs Big Ending: You Could Say The Team Is Issuing A Challenge - UploadVR - March 26th, 2020
- How fast does your internet need to be to survive quarantine life? - Mashable - March 26th, 2020
- How Long Do You Want to Live? This Technology Could Potentially Help People Live Forever - Interesting Engineering - March 26th, 2020
- 'Star Trek: Picard': Jean-Luc Picard may upload his mind to a synthesized being, bringing the show full circle - MEAWW - March 26th, 2020
- Coronavirus making you work from home? We tried these 6 free apps to break the monotony - YourStory - March 26th, 2020
- 2AM's Jo Kwon Talks About How Musicals With EXO's Xiumin, Yoon Ji Sung, And More Helped Him During Military Service + His Future Plans - soompi - March 26th, 2020
- Meet the GIF Makers Who Craft Art out of Pinpoint Gameplay - EGMNOW - March 26th, 2020
- The Best Ways to Virtually Stay in Touch During the COVID-19 Pandemic - Training.com.au - March 26th, 2020
- Why Networking is So Important in the Legal Industry - Legal Reader - March 26th, 2020
- Grammarly vs Ginger: Which Is the Best Grammar Checker - Guiding Tech - March 26th, 2020
- How COVID-19 is highlighting the need for Canada to embrace digital signatures - BetaKit - March 26th, 2020
- Which Malaysian Telco provides the best roaming experience in Singapore? - SoyaCincau.com - March 17th, 2020
- Five Features Your Next CRM Needs To Maximize Your Sales - Forbes - March 17th, 2020
- Here's an easy method to install the Google Play Store on your Huawei phone - comments - GSMArena.com - March 17th, 2020
- City of Cape Town will shut down these facilities due to coronavirus - The South African - March 17th, 2020