Let’s kick off this new decade with Origin’s income tax-saving opportunities before the fast-approaching 29 February 2020 tax year-end! 

The Origin Group offers the following tax-saving advice and products to help you maximise the tax benefits offered through investments, risk management products and legislation. 

INDIVIDUAL AND GROUP RETIREMENT ANNUITIES & PENSION FUNDS 

Try to invest the full 27,5% of your taxable income in a retirement annuity and benefit from the other advantages too, such as: 

• Growth in your investment is tax-free. 
• Favourable tax treatment on lump-sum proceeds at retirement or death. (First R500 000 tax-free and the rest of the lump sum taxed at favourable rates) 
• Retirement funds are protected against creditors and therefore insolvency. 
• Withdrawals from other retirement funds, such as employer funds after resignation, can be transferred to retirement annuities free of tax. 
• Retirement funds are exempt from estate duties and do not form part of your estate; therefore, also saving on executors’ fees. 
• A monthly income provided in retirement with various options available. 
• Group retirement annuities can form part of your employee benefits, with one benefit being the reduction in taxable income. 

At Origin, we offer a range of actively managed model portfolios and fund choices in order to enhance communication from fund performances, optimise market opportunities and strive to keep costs as low as possible for our clients. 

TAX-FREE SAVINGS 

With a tax-free investment, you do not receive immediate income tax relief, but your fund grows free of tax while you remain within the tax-free savings product. Every year, you can invest up to R33 000 in tax-free savings accounts, with a lifetime limit of R500 000. When you do make a withdrawal, or at maturity, you won’t be taxed on the proceeds either. A variety of funds are available to invest in and can be structured according to your specific need, risk and time of investment. 

STRUCTURED INSURANCE 

You can create and increase insurance capacity over a period and retain more risks or higher deductibles than through a standard business short-term insurance policy. 

Herewith a few benefits of what specialised structured insurance can offer: 

• Receive additional risk cover. 
• Improve cash flow benefits. 
• Create a self-insurance capacity for uninsurable or expensive risks. 
• Lump-sum or monthly contributions are accepted, which are short-term insurance premiums and deductible for income tax purposes. 
• Can be structured as stand-alone and as a supplement to your traditional short-term insurance benefits. 

TAX RISK POLICY 

Have you or your business been selected for an audit by SARS? The additional accounting and fees towards tax specialists can become unaffordable. 

Origin offers a tax risk policy to look after these unforeseen additional accounting fees or appoint the team of tax professionals who will defend you. The cover can provide for Income Tax audits, VAT, Employees Tax, CGT and dispute resolution hearings and appeals to the Tax Board and Court.  Once again, it is best to contact your Origin adviser to help get this policy in place for the coming tax year’s audits! 

To ensure you do not miss out on the tax-saving opportunity for 2020, please contact our team of financial planners by latest 20 February 2020 in order to add an appropriate lump sum contribution to your retirement annuity, tax-free savings account or structured insurance product. Your financial planner can calculate the correct contribution to maximise your tax deduction for the tax year. 

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)