Tax Free Investment
Start a tax free savings plan today.
What is a Tax Free Savings Plan?
Tax Free Investments were introduced as an incentive to encourage household savings. This incentive has been available from 1 March 2015.
How it works?
The tax free investments may only be provided by a licenced bank, long-term insurers, a manager of registered collective schemes (with certain exceptions), the National Government, a mutual bank a co-operative bank, the South African Postbank, and administrative financial services provider and a person authorised by a licensed exchange to perform one or more securities services in terms of the exchange rules. Service providers must be designated by the Minister in the Gazette. As per the current Regulation, only the above are designated.
You don’t have to pay income tax, dividends tax or capital gains tax on the returns from these investments.
a person is limited to an annual limit as well as a lifetime. Currently this is R 36, 00 per year with a life time limit of R 500, 000