5 Top tax tips to get your finances in shape before 27 February
5 Top tax tips to get your finances in shape before 27 February
5 Top tax tips to get your finances in shape before 27 February
Gary Oberholzer
5 Top tax tips to get your finances in shape before 27 February
February’s tax deadline is looming, and many South Africans risk leaving valuable savings on the table simply because they wait too long to act. As Warren Bees, Wealth Manager at Private Client Holdings, put it on HOT Business with Jeremy Maggs: “The later you leave it, the higher your stress levels are going to get.”
It’s a timely reminder that tax planning doesn’t have to be complicated — it just needs to be intentional. With a few well-considered decisions, you can meaningfully improve your long-term financial outlook, reduce your tax burden, and avoid the classic “admin hangover” that hits so many households every year.
Below, we break down five practical, high-impact actions based on Bees’ insights — steps that any taxpayer, regardless of income, can benefit from before 27 February.
TOP TIP 1: Boost Your Retirement Contributions
Retirement annuities remain one of the most valuable — and most underused — tax tools.
You can deduct up to 27.5% of your taxable income (capped at R350 000), giving you an immediate tax saving. Thanks to the two-part retirement system, introduced in 2024, you also have more flexibility, with the ability to withdraw from the “savings component” once a year.
Why it matters: You reduce your tax bill and build long-term security.
TOP TIP 2: Don’t Ignore the R100 000 Donations Allowance
Many taxpayers misunderstand donations tax. You can donate R100 000 per person, per tax year, tax-free — and couples can therefore donate R200 000 in total.
This applies to gifts to children or anyone else, and can even help reduce interest-bearing trust loan accounts.
Why it matters: It’s a simple, legal way to reduce estate value and future tax exposure — but only if done before 27 February.
TOP TIP 3: Maximise Your Tax-Free Savings Account (TFSA)
The annual limit is R36 000, with a lifetime cap of R500 000. The biggest mistake? Withdrawing too early and interrupting compound growth.
Why it matters: No tax on interest, dividends or capital gains — and long-term compounding is incredibly powerful.
TOP TIP 4: Prioritise Based on Your Life Stage and Goals
If cash is limited, balance RA contributions with TFSA top-ups. Bees recommends a goals-based plan that considers education costs, emergencies, legacy planning, and your retirement timeline.
Why it matters: There is no single correct answer — it’s about the right mix for you.
TOP TIP 5: Avoid the “Administration Hangover”
Leaving everything until the last week of February can create unnecessary panic. Financial advisers, institutions, and SARS systems are all overloaded.
Why it matters: Acting early ensures clean paperwork, lower stress, and fewer mistakes.
Ahmed Kajee
More Posts for Show: HOT Business with Jeremy Maggs
