Tax season doesn’t have to be daunting. Did you know that SARS offers a variety of rebates, deductions, and incentives for both individuals and businesses? Applying these tax relief measures correctly can significantly lower your tax liability.

As an audit firm, we can help identify which tax benefits apply to you, your company, and your employees, ensuring you don’t overpay. As Albert Einstein said, “The hardest thing in the world to understand is the income tax.” But with the right guidance, you can navigate it easily.

Tax rebates, deductions, and incentives reduce the amount payable to SARS, offering valuable savings. However, identifying which ones you qualify for and understanding the claiming process can be challenging.

We can assist you with this. We may have already applied some of these benefits to your tax returns, but here’s a list of potential tax savings you could be eligible for in the 2024 Tax Season. Some are well-known, while others are lesser-known opportunities.

Tax Savings For Individuals:

• Tax Threshold: Taxable income starts above R95,750 (under 65), R148,217 (65 – 75), and R165,689 (over 75).
• Tax Rebates: A primary rebate of R17,235, a secondary rebate of R9,444 for those over 65, and a tertiary rebate of R3,145 for those over 75.
• Medical Tax Credits: R364 per month for you and your first dependent, and R246 for each additional dependent, for medical scheme contributions.
• Additional Medical Expenses Tax Credit: Deductions for qualifying out-of-pocket medical expenses not covered by your medical aid.
• Retirement Fund Contributions: Deductions for contributions to locally-registered pension, provident, or retirement annuity funds, subject to limits.
• Tax-Free Investments: Income from tax-free investments is exempt from tax, within certain limits.
• Donations: Deductions for donations to approved public benefit organisations, up to 10% of taxable income.
• Solar Energy Tax Credit: 25% credit for the cost of new solar PV panels, up to R15,000, acquired between 1 March 2023 and 29 February 2024.
• Home Office Expenditure: Deductible expenses for a dedicated home office area used regularly for work.
• Foreign Tax Credit: Rebate for foreign taxes paid on foreign-sourced income.
• Business Expenses: Deductible business expenses or losses for individuals or partnerships, similar to companies.

Tax Savings For Businesses:

• Small Business Corporations (SBCs): Progressive tax rate, immediate write-off for new machinery, and allowances for depreciable assets.
• Qualifying Micro Businesses: Simplified turnover tax instead of multiple taxes.
• Energy Efficiency Savings: Deduction for savings from energy-efficient practices, at R0.95 per kilowatt-hour saved.
• Renewable Energy Tax Deduction: 125% deduction for eligible assets used in renewable energy production.
• Research and Development (R&D) Incentives: 150% deduction for qualifying R&D costs, with accelerated depreciation on R&D assets.
• Learnership Agreements: Additional tax deduction for training employees in a regulated environment.
• Charitable Donations: Deductions for donations to approved public benefit organisations, up to 10% of taxable income.
• Depreciation Allowance: Deductions for wear and tear on movable trade assets and allowances for scrapped assets.
• Interest Expenses: Deductible interest expenses incurred in income production and trade.
• Bad Debts: Deductible under certain conditions, with an allowance for doubtful debts.
• Foreign Tax Credit: Rebate or deduction for foreign taxes on foreign or SA-sourced income.
• New Commercial Buildings: 5% allowance for new commercial buildings or improvements.
• Residential Units: 5% allowance for new or improved residential units.
• Urban Development Zones: Deductions for building erection or improvement, extended until 31 March 2025.
• Special Economic Zones (SEZ) Incentive: Reduced corporate tax rate, building cost allowances, and employees’ tax reduction through ETI.

Explore More Tax Savings

These are just a few of the tax rebates, deductions, and incentives available. Our expertise ensures you benefit from all applicable tax reliefs, reducing your tax burden this season. Contact us to see how we can help you maximize your tax savings!