Your Year-End Tax Checklist: Smart Moves Before 28 February
As the tax year draws to a close, now is the ideal time to review a few strategic actions that can make a meaningful difference to your tax position.
These steps are practical, high impact, and designed to help South Africans make the most of available tax incentives before 28 February.
- Review your retirement fund contributions
Contributions to a Retirement Annuity or other approved retirement funds may reduce your taxable income while strengthening your long-term financial plan. If you have not yet maximised your allowable deduction for the year, this is a good time to reassess your contributions.
- Make use of your Tax-Free Savings Account allowance
Each individual, including minor children, may contribute up to R36,000 per tax year to a Tax-Free Savings Account. Interest, dividends, and capital growth within a TFSA are tax free, making it one of the most effective long-term investment vehicles available.
- Consider a qualifying Section 18A donation
Donations to approved Public Benefit Organisations that issue Section 18A certificates are tax deductible, subject to limits. If charitable giving is part of your financial plan, completing donations before year end may provide tax benefits.
- Review capital gains and losses
If you realised capital gains during the year, it may be possible to offset these by realising losses on underperforming investments. This approach, commonly referred to as tax loss harvesting, can reduce capital gains tax exposure.
Timing is also important when selling property. The primary residence exclusion can have a significant impact on the tax outcome, depending on the circumstances.
- Check your interest income position
Interest income is exempt from tax up to R23,800 per year, or R34,500 for individuals aged 65 and older. If your interest income is approaching or exceeding these thresholds, it may be worth reviewing how and where surplus cash is held.
- Gather your tax certificates early
Ensure that all relevant documents are available and accurate, including:
- Interest and dividend statements
- Capital gains summaries
- Retirement Annuity and TFSA contribution certificates
Having these ready reduces delays and helps prevent mismatches when submitting your return.
- Review medical and other deductible expenses
If you incurred qualifying medical expenses or other allowable deductions during the year, ensure that supporting documents are organised and available for your tax return.
- Provisional taxpayers should reassess their estimates
For provisional taxpayers, the second provisional tax payment is due at the end of February. Reviewing and adjusting your estimate where necessary can help reduce penalties and interest later.
End the tax year with confidence
A timely review before 28 February can help you avoid last-minute pressure and identify opportunities specific to your financial situation.
If you would like assistance reviewing any of these areas or ensuring that your tax affairs are on track, professional guidance can make the process simpler and more effective.