Take advantage of
current tax breaks
As the end of the 2025/2026 tax year approaches, this is your reminder to act before 28 February to take advantage of valuable tax benefits still in play. We highlight key moves you can still make – and flag important updates from the South African Reserve Bank (SARB) that may impact how you invest offshore.
To reduce your tax liability and grow your wealth smarter, consider the following before the tax year-end:
Both tools are powerful in their own right – and even more so when paired with sound estate and retirement planning.
TFSAs offer different investment options to suit your objectives and risk profile. Sanlam Private Wealth offers three funds suited for TFSA contributions:
In addition, a TFSA provides you with a unique opportunity to make use of your annual donations tax exemption to donate up to R100 000 (R200 000 if each spouse makes use of his or her exemptions) per year to your children without incurring donations tax. It can therefore provide you with an alternative estate planning tool, as the funds will be invested in your children’s names in a tax-efficient investment.
Investing in an RA is an excellent way to save on tax and give your retirement portfolio a boost – you won’t pay any dividends tax, and income and capital gains tax won’t apply to the assets managed. You can contribute to an RA even if you’re also contributing to a pension or provident fund.
Contributions made during a tax year to all South African funds – including RAs – are tax deductible up to a maximum of 27.5% of your taxable income, but subject to an annual ceiling of R350 000. Contributions in excess of these limits that have not been allowed as a tax deduction may be carried forward.
As many investors continue to diversify globally, changes to the Single Discretionary Allowance (SDA) may affect how you transfer funds offshore – and how you plan your calendar-year cash flows.
Here’s what’s new:
This shift introduces more flexibility for legitimate offshore spending, such as education, travel or maintenance – but care must be taken to ensure proper categorisation and compliance.
Whether you’re investing locally or offshore, this is a strategic moment to review your tax planning. Now’s the time to:
For tailored advice on tax-efficient investing and offshore allowances, please contact your portfolio manager.
The formation and registration of trusts, and the provision of independent trusteeships – both local and offshore.
The creation of BEE, charitable, special and Shariah trusts compliant with regulatory and legislative requirements.
The administration of deceased estates in South Africa and abroad.
Advice on complex structures, asset restructuring and bequests in foreign jurisdictions.
Advice on emigration and immigration, foreign earnings and the application of any double taxation agreements.
Updating trust deeds to ensure they’re in line with the latest changes in the trust environment.
Updating and/or drafting of wills dealing with South African and/or foreign assets.
Advice on the establishment and management of charitable organisations, their tax status and tax deductible donations.
Advice on the potential tax consequences and reporting obligations if you hold a US passport or green card, or if you have children living in the US.
Guidance on the financial implications of life-changing events, such as getting married, divorce or the birth of a child.
