Here’s how to pay almost zero tax on retirement
” Maximise medical tax credits Matela says even where taxable income does creep above the threshold, there is another mechanism that most retirees underestimate: the medical scheme fees tax credit.“Beyond the age threshold, the TFSA, and medical credit, even returns from a discretionary investment can be managed carefully, with only the growth portion subject to capital gains tax (CGT) and the annual R50 000 CGT exclusion for individuals and special trusts providing further relief.
Kananelo Matela, Junior Investment Consultant at 10X Investments, says the answer doesn’t require anything exotic, just an understanding of three things the South African Revenue Service (Sars) already gives taxpayers: an income threshold it doesn’t tax, an account it can’t see into, and a credit it lets you offset directly against whatever bill remains.
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