{"id":851615,"date":"2026-02-20T07:33:42","date_gmt":"2026-02-20T05:33:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=851615"},"modified":"2026-02-20T07:33:45","modified_gmt":"2026-02-20T05:33:45","slug":"tax-season-2026-what-should-south-african-investors-be-doing-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/851615\/tax-season-2026-what-should-south-african-investors-be-doing-now\/","title":{"rendered":"Tax Season 2026: What Should South African Investors Be Doing Now?"},"content":{"rendered":"\n<p><em>By Kim Zietsman, Laurium Capital<\/em><\/p>\n\n\n\n<p>Tax season is more than an administrative deadline. It is one of the most powerful annual opportunities South African investors have to strengthen their long-term wealth strategy.<\/p>\n\n\n\n<p>Two of the most effective tools available are Tax-Free Savings Accounts (TFSAs) and Retirement Annuities (RAs).<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.lauriumcapital.com\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=February+2026\" target=\"_blank\" rel=\"noreferrer noopener\">Discover Laurium Capital\u2019s Tax-Free Savings Accounts and Retirement Annuities<\/a>.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Used correctly \u2014 and consistently \u2014 they can materially improve long-term after-tax outcomes.<\/p>\n\n\n\n<p>The key question is not whether to use them, but how to prioritise and structure contributions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Tax-Free Savings Accounts: The Power of Tax-Free Compounding<\/h2>\n\n\n\n<p>A Tax-Free Savings Account allows investors to contribute up to R36,000 per tax year, with a lifetime contribution limit of R500,000.<\/p>\n\n\n\n<p>Within a TFSA:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No income tax on interest<\/li>\n\n\n\n<li>No dividends withholding tax<\/li>\n\n\n\n<li>No capital gains tax<\/li>\n<\/ul>\n\n\n\n<p>Over long investment periods, the benefit of compounding without tax drag can be substantial.<\/p>\n\n\n\n<p>When a TFSA makes sense:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You have surplus capital after emergency funding.<\/li>\n\n\n\n<li>You want flexibility (no withdrawal penalties).<\/li>\n\n\n\n<li>You are investing for long-term growth (10+ years).<\/li>\n\n\n\n<li>You want to build a tax-efficient discretionary pool of capital.<\/li>\n<\/ul>\n\n\n\n<p>Because the lifetime contribution limit is currently set at R500 000, maximising annual contributions early is often highly beneficial.<\/p>\n\n\n\n<p>One would reach this in 14 years at the current R36 000 p.a. contribution rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Retirement Annuities: Immediate Tax Deduction + Long-Term Growth<\/h2>\n\n\n\n<p>Retirement Annuities (RAs) allow investors to deduct contributions of up to 27.5% of gross taxable income (capped at R350,000 per year).<\/p>\n\n\n\n<p>This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Immediate tax relief at your marginal rate.<\/li>\n\n\n\n<li>Capital compounds free of income tax, dividends tax, and capital gains tax inside the RA.<\/li>\n<\/ul>\n\n\n\n<p>However, RAs:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are subject to Regulation 28 asset class limitations, such as a maximum of 75% in equities or 45% offshore.<\/li>\n\n\n\n<li>Lock one third of your capital in until age 55 (with limited exceptions).<\/li>\n<\/ul>\n\n\n\n<p>When an RA makes sense:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You are a high-income earner seeking tax relief.<\/li>\n\n\n\n<li>You are under-saved for retirement.<\/li>\n\n\n\n<li>You are not good at saving and need your investments to be out of reach until retirement.<\/li>\n\n\n\n<li>You want disciplined, long-term capital allocation.<\/li>\n\n\n\n<li>You value structural tax efficiency.<\/li>\n<\/ul>\n\n\n\n<p>For many investors, the optimal solution is not choosing one over the other \u2014 but using both strategically.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Investment Engine Matters<\/h2>\n\n\n\n<p>Tax efficiency enhances returns \u2014 but underlying investment performance drives wealth.<\/p>\n\n\n\n<p>Choosing the right fund inside your TFSA or RA can make a meaningful difference over time.<\/p>\n\n\n\n<p>Laurium Capital has various funds available for those investors requiring Regulation 28 compliant portfolios, as well as those seeking growth without the constraints of Regulation 28, such as the Laurium Flexible Prescient Fund.<\/p>\n\n\n\n<p>The Laurium Flexible Prescient Fund is available through a Tax-Free Savings Account.<\/p>\n\n\n\n<p>On 1 February 2026, the Laurium Flexible Prescient Fund celebrated its 13th anniversary.<\/p>\n\n\n\n<p>The Fund has generated a cumulative return of over 374% since inception, translating into a net annualised return of 13.3% per annum.<\/p>\n\n\n\n<p>The Fund\u2019s long-term track record has been reinforced by strong recent performance.<\/p>\n\n\n\n<p>Over the 2025 calendar year, the Laurium Flexible Prescient Fund delivered a return of 29.6%. (Source: Morningstar Direct, 31 Jan 2026).<\/p>\n\n\n\n<p>This performance compares favourably across a wide range of benchmarks and peer measures.<\/p>\n\n\n\n<p>An annual compound annual growth rate of 13.3% is comfortably ahead of the fund\u2019s benchmark of CPI + 5% (10.1%), the FTSE\/JSE Capped SWIX All Share Index (10.9%), and the ASISA South African Equity General category (9.1%). (Source: Morningstar Direct, 31 Jan 2026).<\/p>\n\n\n\n<p>This level of outperformance has been achieved while maintaining a diversified, risk-aware portfolio\u2014highlighting Laurium\u2019s ability to add value not only relative to inflation, but also versus traditional equity markets over a full market cycle.<\/p>\n\n\n\n<p>Importantly, the Fund has been ranked number one out of 24 funds in the ASISA Flexible category since inception (1 February 2013), underscoring its consistency and leadership over the long term.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Should Clients Think About Allocation This Tax Season?<\/h2>\n\n\n\n<p><strong>Step 1: Maximise Tax Efficiency<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contribute up to R36,000 to your TFSA.<\/li>\n\n\n\n<li>Consider additional RA contributions if you have unused deduction capacity.<\/li>\n<\/ul>\n\n\n\n<p><strong>Step 2: Align Time Horizon with Strategy<\/strong><\/p>\n\n\n\n<p>Long-term capital (10+ years): Growth-oriented, flexible multi-asset strategies.<\/p>\n\n\n\n<p>Retirement capital: Balanced growth within Regulation 28 constraints.<\/p>\n\n\n\n<p><strong>Step 3: Focus on After-Tax Outcomes<\/strong><\/p>\n\n\n\n<p>A 1\u20132% improvement in annualised return, compounded tax-free over decades, can materially increase retirement capital.<\/p>\n\n\n\n<p>Tax season is not about filing \u2014 it is about funding your future.<\/p>\n\n\n\n<p>For more information, contact your financial advisor or <strong><a href=\"https:\/\/www.lauriumcapital.com\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=February+2026\" target=\"_blank\" rel=\"noreferrer noopener\">Laurium Capital<\/a><\/strong> on <strong><a href=\"mailto:ir@lauriumcapital.com?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=February+2026\">ir@lauriumcapital.com<\/a><\/strong>.<\/p>\n\n\n\n<p><em><strong>Disclaimer:<\/strong> Laurium Capital (Pty) Ltd is an authorised financial services provider <strong>(FSP 34142)<\/strong>. Collective Investment Schemes in Securities (CIS) should be considered as medium to long-term investments. The value may go up as well as down and past performance is not necessarily a guide to future performance. CISs are traded at the ruling price and can engage in scrip lending and borrowing. A schedule of fees, charges and maximum commissions is available on request from the Manager. A CIS may be closed to new investors in order for it to be managed more efficiently in accordance with its mandate. There is no guarantee in respect of capital or returns in a portfolio. Performance has been calculated using net NAV to NAV numbers with income reinvested. The performance for each period shown reflects the return for investors who have been fully invested for that period. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of reinvestments and dividend withholding tax. Full performance calculations are available from the manager on request. Annualised performance shows longer term performance rescaled to a 1-year period. Annualised performance is the average return per year over the period. Actual annual figures are available to the investor on request. Highest and lowest is returns for any 1 year over the period since inception have been shown. NAV is the net asset value represents the assets of a Fund less its liabilities. Prescient Management Company (RF) (Pty) Ltd is registered and approved under the Collective Investment Schemes Control Act (No.45 of 2002). For any additional information such as fund prices, fees, brochures, minimum disclosure documents and application forms please go to <strong><a href=\"https:\/\/www.prescient.co.za\/?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=February+2026\" target=\"_blank\" rel=\"noreferrer noopener\">www.prescient.co.za<\/a><\/strong>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax season is more than an administrative deadline. It is one of the most powerful annual opportunities South African investors have to strengthen their long-term wealth strategy.<\/p>\n","protected":false},"author":57,"featured_media":846116,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[24807,19603,24763,23999,24659,24762],"class_list":["post-851615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-kim-zietsman","tag-laurium-capital","tag-retirement-annuities-ras","tag-south-african-investors","tag-tax-season-2026","tag-tax-free-savings-accounts-tfsas"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=851615"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851615\/revisions"}],"predecessor-version":[{"id":851622,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851615\/revisions\/851622"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/846116"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=851615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=851615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=851615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}