• FINANCE
MAXIMISING TAX SAVINGS: A GUIDE FOR YOUNG FEMALE MINING EXECUTIVES into perspective, using the above example, this would reduce the income tax you pay in your 2026 year of assessment by R49 725. Using the same example, if your taxable income before a retirement fund tax deduction is around R800 000, if you were to contribute the maximum tax-deductible retirement fund contribution allowed in this instance( 27.5 % of your taxable income) – R233 750 – this would reduce the income tax you pay in your 2026 year of assessment by around R91 000, which is substantial.
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Starting a career is the perfect time to build strong financial habits, which include taking full advantage of South Africa’ s tax incentives to maximise tax savings.
The mining environment is dynamic, demanding and often complex, making strategic tax planning essential for personal long-term success. Young female executives in South Africa’ s mining sector are not only shaping the future of a vital industry but also building their own legacies.
Elzahne Henn, tax director at Forvis Mazars, moderated an insightful panel discussion at the second Annual Women in Mining South Africa( WiMSA) Symposium that touched on several practical ways young female mining professionals could make the most of tax planning opportunities in South Africa.
Some of the tax-related takeaways from the discussion are discussed briefly below in a high-level guide tailored to speak directly to young executives and assist them in taking advantage of some of South Africa’ s tax incentives available to individual taxpayers:
1. Leverage retirement contributions Retirement planning is not just about saving for the future; it is a powerful tool for immediate and long-term tax savings that will form an important part of your wealth creation strategy. Contributing to a South African retirement fund allows you to deduct up to 27.5 % of your taxable income( capped at R350 000 per year) for contributions to pension, provident or retirement annuity funds. For mining executives, maximising these contributions can significantly reduce your tax liability while building a robust retirement portfolio.
For instance, if your taxable income before a retirement fund tax deduction is around R800 000 and you contribute around R150 000 to a retirement fund, the full amount is deductible, lowering your taxable income and thus your tax bill. To put this
In addition to an upfront tax deduction in the relevant year of assessment, all growth on the retirement fund interest is only taxed at the point in time you access the funds. This deferred taxation on the growth of your retirement fund investment results in substantial long-term tax savings. Even small annual retirement fund contribution increases can compound into substantial savings and investment growth for your retirement.
An additional benefit is that proceeds from retirement funds will not form part of your deceased estate and will thus not attract any estate duty on the estate your loved ones will inherit.
However, it is important to note that there are restrictions on accessing your retirement funds once contributions are made, making it crucial that you understand your short-term, mediumterm and long-term liquidity needs. The recently legislated two-pot retirement system has made it possible for emergency access to your retirement funds, subject to certain limitations and tax implications that will not be covered in this article but are crucial for you to understand before making any decisions that relate to retirement fund investments or withdrawals.
2. Harness the power of TFSAs Tax-Free Savings Accounts( TFSAs) are ideal for executives seeking flexibility and growth. You can invest up to R36 000 per year( lifetime limit of R500 000), and all return interest, dividends and capital gains are tax-free. Use TFSAs for medium to long-term goals, such as funding further education, travel or supporting family. Unlike retirement funds, TFSAs allow penalty-free withdrawals, offering agility for women navigating career transitions or family commitments.
3. Claim all deductions and credits
• Medical aid credits: Mining executives often have comprehensive medical cover. It is important to ensure you claim monthly tax credits for yourself and dependents.
• Donations to Public Benefit Organisations( PBOs): Support causes that matter to you. Donations to registered PBOs approved in terms of section 18A of the Income Tax Act are deductible up to 10 % of taxable income, subject to certain requirements being met.
68 • African Mining • January 2026 www. africanmining. co. za