Retirement, pension and provident fund contributions
If you or your employer (on your behalf) makes contributions to a retirement, pension or provident fund, you may claim a tax deduction for the contributions.
However, the tax deduction has certain limitations and may not always be deducted in full.
Medical aid contributions and medical expenses
Medical aid contributions and medical expenses cannot be claimed as a tax deduction.
The fact that you contribute to a registered medical aid will allow you to deduct a medical tax credit. The medical tax credit is similar to a rebate which reduces your normal taxes payable. The rebate is a fixed amount for a year of assessment and is based on the number of dependents on the medical aid.
The medical expenses paid by you may allow you to deduct an additional medical expenses tax credit (AMTC). This is also similar to a rebate against your normal taxes. The AMTC is based on a fixed calculation that is dependent on your age and disabilities. The AMTC is only available if you have paid certain medical expenses.
Donations
Have you made a donation as charitable gesture and not expected anything in return?
That donation is not tax deductible, unless you receive a section 18A certificate from the organisation to which you made the donation. If the donation is in excess of R100 000 you may also open yourself to donations tax.
Legal costs
You may claim legal costs incurred if it is directly related to a salary package. Examples:
- A CCMA case where the claim (resulting from a court order) is included in income; or
- An out of court settlement in respect of labour disputes that will result in the taxpayer receiving an amount that is taxable.
Travel expenses
Do you incur travel expenses in order to get to work? Have you thought of claiming it back as a tax deduction?
Well, you may take the travel expenses in to account in determining your taxes if you have received a travel allowance from your employer or if you have the use of an employer owned vehicle. The expense must relate to the vehicle that is used to travel for work purposes. You also need to keep a detailed logbook in order to claim these expenses on assessment.
Don’t take our word for it, check out the SARS website: https://www.sars.gov.za/wp-content/uploads/Ops/Guides/IT-AE-36-G05-Comprehensive-Guide-to-the-ITR12-Income-Tax-Return-for-Individuals-External-Guide.pdf
At SBS we make your work a lot more lighter by taking care of the bookkeeping, accounting AND TAX for you. You are able to focus on running and growing your business with the time on your hands to pursue your passions and dreams.
Get in touch with us by sending an email to hello@santosbiz.co.za or Book a Call with us now.