Move to allow you to claim employer RA contributions

There is some good news in the Budget for employees whose employers pay into a retirement annuity (RA) on their behalf. Until now, these contributions have been taxed in your hands as a fringe benefit, and you have been unable to claim these contributions to a retirement fund as a deduction because you did not make them yourself. The government is working on proposals to allow you to claim employer contributions to an RA as a tax deduction. This will allow you to make a claim in the same way you can claim contributions you pay, up to 15 percent of your non-retirement-funding income, or R3 500 less current deductions to your pension fund, or R1 750, whichever is the greatest.