The new tax free investment account created by the Minister of Finance has been brought into effect to motivate South Africans to start with their savings.
Only selected financial institutions are suitable or registered for this services.
The tax free investment accounts are capped to an annual capital savings amount of R 33,000 per annum and R 500,000 per lifetime.
This type of investment is only limited to individuals.
The advantages of this type of investment account:
- No income tax payable on interest earned
- No dividend withholding tax no dividends received
- No capital gains tax payable when this investment are being sold