Here’s a truth most people learn too late: the best time to save tax is before your financial year ends, not when you’re filing months later 📅
Once the year closes, your tax position is largely locked in. But in the weeks before year-end, you have real levers to pull. For individuals and most trusts, that year-end is 28 February; for companies, it’s your specific financial year-end. Either way, a little planning now can meaningfully cut your bill. Here are the moves worth considering.
🏦 1. Maximise your retirement contributions
This is the single most powerful lever for most people. Contributions to retirement annuities, pension and provident funds are tax-deductible up to 27.5% of income (capped at R350,000 per year). Topping up before year-end can reduce your taxable income directly, and build your retirement at the same time. If you have room and the cash, this is often the highest-return tax move available 💰
🎁 2. Make your charitable donations count
Donations to registered Section 18A public benefit organisations are deductible up to 10% of your taxable income, but only if made before year-end and backed by a valid Section 18A receipt. If you were planning to give anyway, timing it before year-end turns generosity into a tax saving too 🎁
📊 3. Check your Small Business Corporation status
If you run a company, confirm whether you qualify as a Small Business Corporation, the reduced rates start at 0% on the first R99,000 of taxable income. Year-end is the time to check that your shareholding and income structure still qualify, because the saving is substantial and the qualifying rules are specific 📉
🛠️ 4. Time your asset purchases
If your business needs equipment, tools or assets anyway, buying before year-end can bring forward the wear-and-tear (depreciation) deduction into the current year. Don’t buy things you don’t need just for a deduction, but if a purchase is coming, timing matters 🛠️
💼 5. Review how you’re paying yourself
For company owners, year-end is a good moment to review your salary vs dividends mix and whether it’s still optimal. Bonuses, director’s remuneration and dividend timing all have tax consequences worth planning rather than leaving to chance.
❓ What should individuals (not business owners) focus on?
The big three for individuals: retirement contributions (the top-up), medical expenses and tax credits (make sure you’re claiming everything), and Section 18A donations. Also worth checking: your tax-free savings account contribution room, and whether you have any capital gains or losses worth timing. None of these require a business, just a little attention before 28 February 💡
❓ I’m a provisional taxpayer, does year-end planning affect my estimate?
Yes, directly. Any year-end moves you make (retirement top-ups, donations, asset purchases) change your taxable income, which affects your second provisional tax estimate due in January. Doing the planning and the estimate together, with current numbers, is how you both reduce your tax and avoid underestimation penalties 📊
❓ Is it too late if my year-end is almost here?
Some moves (like retirement top-ups and donations) can be made right up to year-end, so even a late start helps. Others (like restructuring) need more lead time. The lesson for next year: the earlier you plan, the more options you have. But even now, a quick review is almost always worth it 🎯
🎯 Plan now, save later
Year-end tax planning isn’t about aggressive schemes, it’s about making the legitimate moves available to you in time to count. An hour of planning before year-end routinely saves more than any amount of effort after it.
Go2 Accounting helps business owners and individuals across Pretoria and Tshwane plan tax-efficiently before year-end, retirement, structure, timing and every deduction you’re entitled to. Get in touch before your financial year closes.
Because after year-end, your options shrink, before it, they’re wide open 😉
