Tax planning and its purpose
If you are a South African resident, you are subject to being taxed on your income, irrespective of where you earned it. In our blog on financial emigration, we discussed financial emigration from South Africa and the implications on your tax affairs and residency status. Now we will consider how to plan for taxes, especially if you are onshore or a South African resident earning an income abroad.
Tax planning is a strategy that considers all your financial affairs to:
- Remain compliant with tax provisions.
- Reduce tax rate or liability.
- Maximise tax ability to contribute to retirement plans.
- Reducing the amount of taxable income.
- Control tax payment due dates.
- Claim available tax credits.
- Side-stepping tax planning errors.
In short, it aims at minimising how much tax you pay by using legitimate benefits deductions, exemptions, allowances and rebates per tax regulations to your advantage. Tax planning can help you save for your child’s education and retirement fund, expand your small business and make the most of your income while protecting you from possible penalties. It also includes considerations about selecting investments that complement your tax filing status.
When it comes to tax, we are the best in business.
Our consulting and accounting professionals offer expert tax services. We are committed to providing up-to-date information on income tax and provisional income tax and legislation changes on taxable income in South Africa. Contact us today for advisory services that are tailored and personalised to best suit your tax needs.
