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Retirement Annuity Tax Deduction

Updated: June 2026 5 min read
Quick Overview: You can deduct up to 27.5% of your taxable income or R350,000 per year for retirement annuity contributions, whichever is lower.
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Andre van Niekerk

Registered Tax Practitioner, Admin Boss

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Table of Contents
  1. Quick Answer
  2. How Much Can You Deduct
  3. Carry Forward Rules
  4. How to Claim
  5. Frequently Asked Questions
Quick Answer

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

How Much Can You Deduct

The deduction is limited to 27.5% of the greater of remuneration or taxable income, capped at R350,000 annually. Excess contributions carry forward.

Carry Forward Rules

Contributions exceeding the annual limit can be carried forward to future tax years indefinitely until fully utilised.

How to Claim

Your RA provider issues an annual tax certificate. Enter the contribution amount on your ITR12. The deduction reduces your taxable income directly.

Frequently Asked Questions

How do I claim this deduction on my tax return?

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

What documents do I need?

Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.

Can Admin Boss help with my deductions?

Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.

Need Help With Your Tax?

Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.