While government cannot control how financial markets respond to COVID-19, there is still a lot macroeconomic policymakers can do. The South African Reserve Bank can keep the wheels of the economy oiled amidst tighter financial conditions, which includes cutting the policy interest rate.
National Treasury has just delivered the 2018 Budget Review. Again, due to a persistent Budget deficit, certain taxes were raised. An increase in VAT to 15% is the headline story, but for individuals in the top four income tax brackets the range of the income brackets was not adjusted for inflation. In effect, your clients will therefore have less real income left after tax in the coming year.
The current recession, mainly fuelled by Eskom loadshedding, has led to downward revisions of growth forecasts for the year ahead. While we have a reasonable handle on the impact of electricity outages on GDP growth, the same cannot be said for the spread of the coronavirus.
Taking stock of your finances at the start of February can make or break your tax plan for the year ending 28 February. Now is the ideal time to spot the gaps where you haven’t yet fully used all of your tax-free allowances, whether it’s via a retirement annuity (RA) or a tax-free savings account (TFSA). But which one should you use? RA or TFSA?
There is a way to build your own investment portfolio and be rewarded with a tax refund. Contributing to a retirement annuity (RA) holds the best of both worlds: build long-term wealth and reap the tax benefits. Exactly how big are the benefits?