Tax Free Investments

About Tax Free Investments:

Tax Free Investment accounts were introduced as an incentive to encourage household savings.  This incentive is available from 1 March 2015.

Any amount received from a tax free investment is exempt from normal tax (this includes income on the investment as well as any profits arising on disposal of the investment).  The following requirements must be met:

  • Investment must be owned by a natural person or the deceased or insolvent estate of a natural person;
  • Investment must be a financial instrument or policy that is administered by any person or entity designated by the Minister of Finance;
  • Contributions to the investment must be made in cash and are limited to R30 000 per year and R500 000 in total (both in aggregate).

In the event where the R30 000 and R500 000 limits are exceeded, 40% of the excess investment is treated as normal tax payable (the income on the excess part of the investment is however still tax free).

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