How to calculate the tax return for my retirement annuity?


Your retirement annuity contributions qualify for a tax deduction, subject to a maximum cap of 27,5% of income and a rand limit of R350,000 pa. These limits include any contributions made to your workplace pension or provident fund.

To calculate your retirement annuity tax refund, you must multiply the amount of your contribution by your marginal tax rate (the highest tax rate applied to any part of your income). So if you contribute, say R12,000 per year, and your marginal tax rate is 25%, then you would get a refund of R3,000. If your marginal tax rate was 41%, your refund would be R4,920.  

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


Get investment and saving tips straight to your inbox.

Related FAQ

Can I change my portfolio after signing up?

Yes you can definitely change your portfolio after signing up. To do so, you simply need to log into...

Related FAQ

What do I need to invest in a 10X TFSA?

To sign up for a TFSA with 10X, you'll need the following documents: a valid South African ID or pas...

Calculator

How much do I need?

We can help you plan your future. Use our calculator to see if you are on track for a comfortable retirement.

RA Calculator

Get started or switch to 10X today.