I do not have any existing retirement annuity funds and i would like to start one. However, i would like to know if i make a lumpsum payment (up to my allowable 15% max) now can i get the tax refund for it as i want it to relate to last years tax year. Basically i would effectively be making two lumpsum payments this year, one i would want to be tax deductible for the 2014 tax year (the return to be submitted later this year) and the other one for the 2015 tax year (relating to the tax return to be submitted in 2015). Is this possible to get the tax back for 2014, if i start a retirement annuity now?
Sheri, No, you cannot claim RA contributions made this tax year in your prior year tax return. The requirements are quite specific on this - your retirement annuity fund administrator issues you with a certificate confirming the contributions received that year. Any contribution received after 28 (29) February of each tax year appears on the following tax year's certificate. There is no way around that. However, you can carry forward and claim any contribution not claimed for tax this year in future years, within the prescribed limits that year. New laws that will come into effect either on 1 March 2016 or 1 March 2017 that will allow you to deduct total retirement fund contributions (to pension, provident and retirement annuity fund combined) up to 27,5% of your income. So if you are saving 15% of your income per year, you will be able to claim the extra contributions made this year in two or three years time.