Return to Webmag Home
Financial Planning
03 minutes

The 28 February Countdown: Don’t Leave Your Tax Benefits on the Table

With South Africa’s tax year-end approaching, investors still have time to optimise contributions to tax-efficient vehicles. James Steere of Perspective Investment Management> outlines how TFSAs and retirement annuities can enhance long-term wealth while delivering immediate tax relief.
Written by
James Steere
Published on
February 23, 2026
Copy link

James Steere, Head of Operations, Perspective Investment Management

As we approach 28 February 2026, South Africa’s tax year-end, investors have a valuable opportunity to put the finishing touches on their financial plans and potentially [and legally!] reduce their tax bill before the clock runs out.

Two commonly used tax‑efficient savings tools available to local investors at this time of year are Tax-Free Savings Accounts (TFSAs) and Retirement Annuities (RAs). Used correctly, they can significantly enhance long-term wealth while offering immediate and future tax benefits.  

Tax-Free Savings Accounts: Compounding Without the Tax Drag

Tax-Free Savings Accounts remain one of the most compelling investment vehicles available to South Africans.

Contributions are made with after-tax money, but the real benefit lies in what happens next:
all growth, including interest, dividends, and capital gains are completely tax-free.

South African investors have until 28 February 2026 to contribute towards the R36,000 annual tax-free limit for this tax year, provided that they haven’t already reached the lifetime limit of R500,000.

Because withdrawals are also tax-free, TFSAs are often used for long-term goals such as retirement top-ups, education funding, or generational wealth planning. Importantly, any withdrawn amounts do not reset your lifetime limit, making early and consistent contributions especially valuable.

‍

“Tax efficiency is not about avoiding tax, it is about using the legal incentives already available to build long-term financial security.”

James Steere
Head of Operations, Perspective Investment Management

Retirement Annuities: Immediate Tax Relief, Long-Term Security

Contributions to an RA are tax-deductible up to 27.5% of the greater of taxable income or remuneration, capped at R350,000 per year. This means that for many investors, contributing before 28 February may result in a tax refund or reduced tax liability.  

Beyond the upfront tax deduction, RA’s offer, tax-free growth within the fund.

Small Decisions, Long-Term Impact

The days leading up to 28 February are often busy, but they present opportunity.  

Whether you are maximising allowances, making a once-off top-up, or starting your investment journey, these accounts reward consistency, patience, and early action.

Tax efficiency is not about avoiding tax, it’s about using the legal incentives the system already provides to build long-term financial security. As the 28 February 2026 deadline approaches, you may wish to to review your contributions and ensure you are making the most of what’s available to you.

Your future wealth may well depend on the decisions you make today.

Disclaimer:

This article is provided for general information and educational purposes only and does not constitute financial advice as contemplated under the Financial Advisory and Intermediary Services Act (FAIS). It does not take account of any reader’s individual financial position, objectives, or needs. Tax rules may change, and the appropriateness of any product depends on personal circumstances. If you require advice, please consult an appropriately authorised financial adviser. Perspective Investment Management (Pty) Ltd is an authorised financial services provider (FSP: 47672).

Work smarter not harder

FSPHub simplifies financial services with secure document management, automated workflows, and seamless client communication. Say goodbye to manual tasks and inefficiencies - our all-in-one platform helps you optimise operations and focus on what matters most: growing your business.

Discover more

Dashboard mockup