010 492 7370 help@taxfree.co.za

Tax Free Savings and Investments

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Every Rand you save in Tax is that little bit more you could have to enjoy during your retirement!

  • Withdraw money at any time during the term.
  • Maximum of R33 000 per year can be invested
  • Maximum lifetime contribution limit of R500 000

Financial independence requires planning! Contact one of our financial advisors.

If you save the maximum R2750/month for 15 years you will have invested R495 000 and could save as much as R189 000 in Tax with a total possible saving of R1 180 000. This is simply too get to not take advantage of, Get advice on the best options for you.

Tax free savings account FAQ

What is a Tax free savings account?
A tax free savings account can be one of a number of different account types, from a fixed term savings account to an exchange traded fund (ETF). It is best to chat to a consultant about the best type for your needs.

Any interest earned, dividends received or capital gains is completely free of tax.

Can I withdraw funds from a tax free savings account if I need to?
You can withdraw the money at any time. When you make a withdawel from your tax free savings account, your maximum life time allowable limit to invest tax free is affected.
Is there a limit to the amount I can invest?
The maximum you are allowed to invest tax free in any single year is R33 000 and in your lifetime R500 000.

There is no limit to the capital gain you can get tax free from the investments. If your investment returns 5% or 55%, the gains are completely tax free.

Do I have to invest every month in the tax free savings account?
No, you do not have to make monthly savings, you are able to add to your TFSA whenever you are able to up to the stipulated maximum annual and lifetime limits.
Can I open a Tax free savings account for my children?
Yes you can open a tax free savings account for your children. The amount you invest in their TFSA will effect their personal annual and lifetime limits so be upfront with them as over investment in TFSA accounts can result in a 40% tax penalty.

Tax free Investments FAQ

Can I invest in the stock market tax free?

Yes you can. Thjere are various financial products from Unit trust accounts to index trackers that have been established to cater for investors of all ages to ntake advantage of Tax free savings.

Are there any fees or charges for investing tax free?

There are fees that the financial institution will levy against your tax free investments which are in line with the fees charged for any other investment.

There is no tax on the growth or dividends you earn from these investments.

Is there a limit to what I can invest in Tax free investments?

Yes there is. You are entitled to invest a maximum of R33 000 perr annum with a per person maximum over your lifetime of R500 000.

These maximums include all tax free investments, whether they are in the form of savings accounts or investment in unit trusts or any other tax free investment vehicle.

If I withdrawe the money tax free can I start investing again tax free?

Providing you have not exceeded the R500 000 threshold for your lifetime, you can continue investing tax free.

By way of example: If you invest R450 000 over 20 years in the tax free investment scheme and yoiu take out R200 000 to pay off your car, you only have a further R50 000 that you can contribute to the scheme.

Why is the SA Governement doing this?

The level oif savings in South Africa is pitifully low which could result in the state having a burden of support for more people that they can afford to support.

The tax free savings and investment drive is to help people develop a culture of savings and to help people become financially secure in retirement.

Any savings that you are able to invest Tax Free should be taken advantage of! It is not often that we are presented with an opportunity to not only save Tax Free, but have access to the money. This is not a fixed term investment or a policy of any sort, this is simply the SA Government encouraging you to save and in so doing, offering you an incentive in the form of a tax free amount.