Amounts included in calculation annuity fund deduction

By Marc Sevitz · Updated

Johannes

Johannes said:
8 March 2016 at 23:26

I am retired and receive a monthly pension which is subject to tax. I make no contributions to a pension fund since I retired. I still contribute to a retirement annuity fund monthly. Do I include the total pension received together with investment tax returns for the year to determine the maximum amount allowed for annuity fund deduction
TaxTim Marc

TaxTim Marc said:
11 March 2016 at 9:44

Yes, you will qualify for a tax deduction of up to 27,5% of your taxable income (to a maximum of R350,000 per year) limited to your contributions made.
Taxable income would include your investment tax returns and monthly net pension (i.e. after tax).
Johannes

Johannes said:
11 March 2016 at 21:41

thanks thats very helpful
TaxTim Marc

TaxTim Marc said:
14 March 2016 at 9:36

Only a pleasure!