Question:
Can I claim RA contributions against income tax from the previous year if it was not claim the previous year. Did not received the sertificate in time.
Answer:
Annette,
This topic creates some confusion. Our law permits RA contributions that cannot be claimed in any tax year (because they exceed the limit of 15% of non-pensionable income) to be carried forward. These can be claimed in future tax years, subject to the prevailing tax limits in those years. Our law also refers to arrears contributions, which can be claimed subject to a limit of R1 800 pa. This refers to an additional current year contribution that is related to a previous tax year in which you did not claim your maximum allowable deduction. This extra contribution of R1 800 can be claimed annually in respect of all previous years in which you did not claim your full 15% (of non-pensionable income) deduction. So you could make a top-up contribution of R1 800 this tax year (above your legal maximum allowed) and claim it in respect of the previous tax year. But in you case, you are not claiming an excess contribution made in a previous year, nor are you making a contribution in the current tax year related to a previous tax year, so you do not qualify for a deduction under either of these provisions. The proper way to deal with this would be to request SARS to reassess your prior year tax, or to at least carry forward the contribution to future tax years. In any event, you do need to engage them on this matter. Even if they do not permit the deduction, they must at least add the unclaimed deduction to your tax-free lump sum at retirement.
