Finance Minister Tito Mboweni gave his budget speech on 24 February. Overall it is a taxpayer and investor friendly budget. Old Mutual has a nice summary of tax changes, we share with readers below.
0 Comments
![]() Here’s what you need to know about your IT3B and IT3C certificates: The IT3B certificate is all about the income you’ve generated from your investment. It’s going to reflect: Local dividends: this is the amount which has been paid to you in dividends from JSE listed companies in the last tax year. We automatically pay 20% dividend withholding tax on these for you, so this appears on your certificate to let SARS know that it’s done and dusted. Make sure you disclose this on your tax return and that’s it - finished and klaar. Foreign dividends: this represents any dividends you received from JSE listed companies which earn money overseas. We’ve paid the 15% dividend withholding tax on your behalf, but you still need to disclose this on your tax return. Taxable dividends: This represents REIT (Real Estate Investment Trust) distribution and applies to those of you who hold shares in a company that invests in property. Interest: This amount of interest, which you earn on local and foreign investments, is considered as income and you'll need to declare it to SARS. Bank Accounts Interest: This is the interest you earn on your bank accounts and deposit accounts. Any interest you earn in a year over R23 800 (R34 500 if older than 65) is taxable when you submit your tax return. The IT3C certificate is all about capital gains. How much did your investment grow? Did you sell anything? Did you earn any profit by doing so? You’re only taxed on shares or unit trusts that you sell. Your IT3C certificate is going to show: A list of companies or unit trusts you’ve invested in; How many shares/units you have in each and how much you bought them for. Because you can buy shares for a certain price on one day, and then buy more of the same shares on another day when the price is different, the cost per share is going to be shown as an average of those prices – to keep things simple! So if you bought 1 share at R50 on Monday and another at R100 on Wednesday, you’d have two shares which you paid R150 in total for. Even though they were bought at different prices, the average cost per share is going to be: R150 divided by 2 shares = R75.00 per share. If you’ve sold a share at a higher price than when you bought it, you’ve made yourself some dosh haven’t you? SARS is going to want in on that. ‘Proceeds’ is going to reflect the amount you sold your shares at and ‘Profit/loss’ is going to reflect how much money you made or lost in that sale. The good news is that SARS is only interested in this amount if it is greater than R40 000 – that’s when you’ll start getting taxed on it. Adapted from: Easy Equities ![]() The world has really gone digital for anything and everything. Discovery has their app available for any person who has at least one active Discovery product. To start using the app you must be registered on Discovery website. If you have not registered you can click this link to take you through the steps Click here. You will use the same username and password for the app as for the Discovery website. To assist with downloading the Discovery App, please click link: How to download the Discovery App If you have a Discovery Medical aid you may do the following on the app;
See below for listed details: Digital cards
Please click here for list of screening and benefit covers Track Vitality status and goals
If you have any questions on Discovery health mobile app, please contact Tammy or Jo in our Health department, tel: 011 658-1333, email: [email protected] ![]() Prevention is always better than cure and that is the main objective of the screening benefit. Medical Aids strive to help their members in detecting medical conditions early. The Screening and Prevention Benefit covers preventive tests, screenings, and a seasonal flu vaccination (for members registered for certain chronic conditions and members over the age of 65) on all Discovery Health Medical Scheme Plans. Having these specific tests conducted (up to the specified number) will not impact your day to day benefits. 1. Tests covered by the benefit:
2. The Vitality Check, a group test done at network pharmacies include:
3. Seasonal flu vaccination – you qualify each year if you’re over age of 65 or registered for one of the below chronic conditions:
4. Screening for kids
You may have certain co-payments
![]() South African Market Update South African equities ended higher for a fourth consecutive month, driven largely by strong performance from large cap resource counters on the back of significant positive commodity price moves. Local bonds ended the month with flat performance, despite developed market sovereign bonds selling off significantly during February and ending with their worst monthly performance in over 35 years. Local listed property ended the month with strong performance in line with other SA risk assets, as investors looked forward to a resumption of economic activity amid declining Covid-19 cases in the country. The rand was broadly unchanged against most major developed market currencies, despite significant volatility during the month in connection with the budget speech as well as global bond yield movements. South African Economic Update On 24 February, Finance Minister Tito Mboweni tabled the 2021/2022 Budget in Parliament. The minister announced that revenue is expected to be around R100 billion ahead of expectations, largely due to tax collections from the mining sector coming in higher than expected due to booming commodity prices, coupled with a recovery in VAT. While the country’s debt burden remains unsustainable, the moves by National Treasury to cancel a proposed R40 billion in tax hikes over the next four years and above inflation increases in personal income tax brackets will be welcomed by local citizens. South African President Cyril Ramaphosa announced on 28 February that the country will move to a level 1 lockdown, to aid a resumption of economic activity amid declining daily Covid-19 cases. SA headline CPI moved higher to a year-on-year figure of 3.2% for January (from 3.1% in December), with increases in fuel, food and non-alcoholic beverages being the largest contributors to the move. Global Market and Economic Update Most major equity markets managed to end the month in positive territory, despite significant volatility in global bond markets towards the end of February amid concerns of rising inflation expectations and possible future interest rate moves. Markets were driven higher during the month by strong Q4 2020 company earnings announcements and positive news on vaccine rollouts, with the US approving the Johnson and Johnson vaccine on 28 February. There was also progress on a new US stimulus package, with a $1.9 trillion Covid relief bill passed by the US House of Representatives, following which it will be considered by the US Senate. Source: Morningstar
Morningstar has published this excellent article on Slow and Steady Wins the Race - It Is OK to Build the Wealth Slowly. It talks about the importance of perseverance, patience and compound interest in building wealth. Building wealth is a journey, it is like a marathon. It is not a 100m sprint. We share with the readers here. ![]() What is it: It is a tax-free investment account. You can invest up to R36,000 a tax year into the account. You can do this for yourself, your spouse and your children. All your contributions, investment growth and interest in the account, and withdrawals are tax free, for life. You may withdraw at any time, although it is recommended that you invest for the long term (5 years +). You can contribute up to R500,000 in your lifetime. What is this product suited for? You may consider investing using this product if: you wish to save up to R36,000 per year, or up to R3,000 per month you wish to invest for your child's education fund you wish to supplement your pre-retirement savings you wish to pay no tax on your investment What is this product not for? It is not a transactional account. It is not for short-term investment What are the investment options? Allan Gray offers the Allan Gray Tax-Free Balanced Fund, which is a good option for most investors. We as a Financial Advisor can use external fund managers to put together a portfolio of funds for our clients. We currently recommend the Morningstar TFSA Portfolio. What are the costs? This is the part where it can be difficult to make sense of. Fund managers of the funds you invest in charge fund management fees. The Total Investment Charge (TIC) is expressed as a percentage. Allan Gray as a LISP (linked investment service provider) charges a platform fee of 0.58% per annum, this is deducted monthly, calculated on the account balance. A financial advisor charges an initial advice fee and an annual advice fee for the advice and services rendered. Why do we recommend Allan Gray Tax-Free Investment? 1. Reputable asset management company; 2. Financially sound; 3. Efficient administration platform; 4. Clever use of technology delivers excellent user interface; 5. Excellent staff delivers excellent client service; 6. Competitive platform administration cost; 7. Reduced admin fee for using Allan Gray funds; 8. Select range of good performing unit trusts; 9. Easily creates customisable, informative investment overview; 10. May nominate beneficiaries on the investment; 11. Enables clients to submit instructions online. To find out more how you may benefit from this investment, or to start such investment, please contact Kevin Yeh, email [email protected]. |
AuthorKevin Yeh Archives
January 2025
Categories
All
|