Tax Free Investment
What is Tax Free Investment ?
A tax-free savings account (TFSA) can take various forms, including a money market or fixed-term bank account, a unit trust investment, or a JSE-listed exchange-traded fund, among others. This account ensures that your principal investment is protected and serves as an efficient savings method for your financial objectives, as any interest, dividends, or capital gains remain tax-free.
In 2023, the tax-free savings account annual contribution limit is set by the government to encourage individuals to save and invest while enjoying tax benefits. For example, let's assume the annual limit is ZAR 36,000. This means that you can invest up to ZAR 36,000 in a tax-free savings account during the 2023 calendar year. Any interest, dividends, or capital gains earned on this investment will not be subject to taxes. By utilising this tax-free allowance, individuals can grow their wealth more efficiently and achieve their financial goals faster.
Benefits of having a tax-free investment
Investment fund priced and traded in units representing a mix of shares and investments, enabling diverse goals across various time frames.
Education Planning is a way of securing funds for future school and University education costs, a vital way of reaching for your family’s potential.