Nobody likes paying tax. But there is a difference between avoiding tax illegally and making sure you don't pay more than the law requires.

That was the argument made by Efficient Group chief economist Dawie Roodt at the 9th BizNews Conference, where he urged South Africans to structure their financial affairs to reduce their tax liability as much as legally possible.

Roodt was clear that he is not advocating tax evasion or simply refusing to pay tax. His advice is to use the deductions and legal provisions available to taxpayers.

So What Does That Mean For You?

It means knowing the rules can matter.

For example, SARS allows qualifying contributions to a pension, provident or retirement annuity fund to be deducted from taxable income. For the 2026/27 tax year, the deduction is limited to 27.5% of the greater of remuneration or taxable income, subject to a maximum of R430,000.

There is also a bigger opportunity for people using Tax-Free Investments.

From 1 March 2026, the annual contribution limit increased from R36,000 to R46,000, while the lifetime limit remains R500,000. Returns inside a qualifying Tax-Free Investment are exempt from income tax, dividends tax and capital gains tax.

But there are rules. Going over the TFSA contribution limits can result in 40% tax on the excess contribution.

Why This Matters

You don't have to be wealthy or run a complicated business to benefit from understanding your tax position.

If you are saving for retirement, investing, earning interest or paying medical scheme contributions, the tax treatment can affect how much money you ultimately keep.

SARS has also adjusted several 2026/27 thresholds and credits, including the medical scheme fees tax credit and interest exemption.

The important point is not to look for loopholes.

It is to know which legal benefits actually apply to you.

Worth Knowing

For the 2026/27 tax year:

• Retirement fund deduction: up to R430,000, subject to the 27.5% limit
• Tax-Free Investment annual limit: R46,000
• Tax-Free Investment lifetime limit: R500,000
• Interest exemption: R23,800 if under 65 and R34,500 from age 65
• Medical scheme tax credit: R376 per month for each of the first two people covered and R254 for each additional dependant

The Bottom Line

Roodt's message is not “don't pay tax”. It's “don't pay more tax than you legally have to”.

You cannot simply deduct anything you spend, and tax planning is not a licence to bend the rules. But understanding the benefits available under South African tax law could help you make better decisions with your own money.

Before accepting that your tax bill is simply what it is, it may be worth checking what you're legally entitled to.