Category Archives: Tax Free Savings Account

Author: Robert Laing (BDlive) Next year will mark the 20th anniversary of the JSE closing its Diagonal Street trading floor and switching to trading via computer screens and networks. Unlike Chicago, Frankfurt and many other exchanges, which kept their trading floors going as a backup while they eased into the new technology, the JSE decided to make a clean break from the past — a reckless leap, I thought, given how firm Telkom’s monopoly was and how bad its lines were back in 1996 when it had only recently split from the post office.

Author: Maarten Mittner (Financial Mail) The recently introduced tax-free savings accounts have received their share of criticism. However, industry experts say the benefits exceed the negative aspects, especially for younger investors. Individuals can choose from different types of investment funds from various financial service providers. One of the major criticisms of the products has been that the tax-free investment amount set for individuals is too low. A maximum of R30 000/year and up to R500 000 over a lifetime in capital gains, dividends, interest earned or on withdrawals from these accounts is nontaxable.

Author: Douglas Gaul, tax manager Grant Thornton Johannesburg Following much anticipation, tax-free savings accounts (TFSA) were introduced on 1 March 2015 as a way to encourage South Africans to save. Natural persons, as well as the deceased or insolvent estates of a natural person, can invest in certain approved tax-free investment vehicles.

This is a brief overview of this new class of investments which are available from 1 March 2015. Tax free income Section 12T of the Income Tax Act No 58 of 1962 and the related regulations provides that the total earnings (by way of interest and dividends) as well as any growth (by way of capital gains) will not attract income tax, dividends tax or capital gains tax in respect of these investments owned by a natural person or the estate of such person.

Author: Douglas Gaul (Grant Thornton Johannesburg) Following much anticipation, taxfree savings accounts (TFSA) were introduced on 1 March 2015 as a way to encourage South Africans to save. Natural persons, as well as the deceased or insolvent estates of a natural person, can invest in certain approved tax-free investment vehicles. What you need to know about tax-free savings There is an annual contribution limit of R 30 000, and a lifetime limit of R 500 000 to tax-free investments.This means that by investing R 30 000 per annum, an individual can build up a tax-free investment of R 500 000 over a period of approximately 17 years.

Author: Lisa Steyn (Mail and Guardian) Finance houses have moved quickly to offer tax-free products made possible by the minister. Financial institutions have scrambled to provide the most attractive tax-free savings, ranging from simple bank deposits to investments exposed to the stock markets. At the beginning of this month, the government introduced tax-free investment regulations in a bid to boost household savings. Regardless of what form the tax-exempt investment takes, the regulations allow for contributions of up to R30 000 a year (an average of R2 500 a month) and no more than R500 000 over a lifetime.

On 20 February 2015, National Treasury issued a media statement indicating that the Minister of Finance approved the final notice and regulations introducing tax free investments, which came into effect on 1 March 2015. The preamble of the regulations, which should be read in conjunction with s12T of the Income Tax Act, No. 58 of 1962 (Act), provides some insight into the Government’s objectives in introducing tax free