Tax Reserve for Retirement: Who Qualifies and What You Get
Learn how entrepreneurs can set aside profit tax-free for retirement and the important changes you need to know about this scheme.
The Tax Reserve for Retirement (often called the FOR) is a way for business owners to set aside a portion of their business profits to save for their later years without paying immediate tax on that money.
Who it's for
This scheme is specifically for entrepreneurs.
What you get
It allows you to take a part of your business profit and set it aside in a reserve. This money is handled in a tax-free manner, helping you build savings for your retirement.
What it costs you
While you save on taxes now, you are required to convert these accumulated reserves into an annuity at a later date.
The catch to know
It is important to note that this scheme is being phased out. New accruals into this reserve have been discontinued since 2023.
How to apply
- Check your current business profit and tax obligations.
- Consult with a tax professional regarding your specific transition.
- Visit the official tax portal for guidance on existing reserves.