Provident Fund deductions

Don’t you think it’s great that we now have Provident Funds as a deductible expense in our tax returns?

Just a heads-up though, for those of you who haven’t yet filed your tax returns.  The employee portion as indicated on the IRP5 under code 4003 is the full amount paid – it is the total of both the employers portion and the employees portion.  This is the amount you use when working out your tax payable.  Do NOT add codes 4003 and 4473 together.  And don’t expect to receive a tax certificate – Provident Funds are run like Pension Funds and are only detailed on your IRP5.  Only the Retirement Annuity Funds provide a certificate.  Using the wrong figures can provide quite a surprise to the taxpayer on assessment, and not a good one.

There are only three months left to file your tax returns.  Give me a call if you need help in getting your return in to SARS.

All the best as we head out of winter and into Spring.  Keep warm and dose up on whatever colds and flu protector you and your family take; this flu is particularly aggressive.

JENN

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