Tax and Compliance
Wealth Planning Basics, Making Your Money Work Beyond Tax Season
For many business owners and professionals, tax season feels like the finish line. Returns are filed, compliance is ticked off, and the temptation is to move on. But tax season can also be a starting point for building long-term wealth.
Retirement annuities
Retirement annuities (RAs) are more than a potential tax deduction. Qualifying contributions may reduce taxable income, subject to the applicable annual limits and your circumstances. Investment returns within a retirement fund generally receive favourable tax treatment, while withdrawals and retirement benefits have their own tax rules. After completing your return, reviewing contributions can be a practical next step towards financial security.
Tax-free savings accounts
Approved tax-free investments allow returns to accumulate without income tax, dividends tax or capital gains tax. Contribution limits apply across your accounts. For the 2027 year of assessment, from 1 March 2026 to 28 February 2027, SARS states an annual contribution limit of R46,000 and a lifetime contribution limit of R500,000. Excess contributions attract tax at 40%. Unused annual allowances do not carry forward, and withdrawing and reinvesting money uses contribution room again.
Review the amounts already contributed before adding money. The right contribution depends on your budget, emergency reserves and goals.
Investment structuring
Beyond RAs and tax-free accounts, investment structuring matters. Consider local and offshore exposure, income-producing and growth assets, and liquidity for emergencies. Holding investments personally, through a trust or through a company can affect tax and succession planning. Each structure has costs and obligations that should be assessed before making changes.
Long-term wealth planning
Wealth planning aligns financial decisions with life goals, such as education, retirement or leaving a legacy. Start by reviewing cash flow, debt, savings and your existing arrangements. Tax efficiency is one part of that process, alongside investment risk, costs and access to your money.
At RB Business Consultants, Robin Botha CA(SA) can help you understand the accounting and tax implications of your plans. Discuss investment product selection and suitability with an appropriately authorised financial adviser.
Book a free discovery session to discuss your accounting and tax needs.
Originally published 6 November 2026. Tax information checked on 9 November 2026. Sources: SARS tax-free investments and SARS retirement fund contribution deductions.
