The JSE and finance forum for South Africa
General Category => Shares => Topic started by: Nios on April 03, 2014, 08:31:43 am
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Govt have finally started the ball rolling, similar to the ISA accounts offered in the UK.
30k p/year investment limit
500k lifetime limit
All returns recevied within the account are tax free
Etfs, bonds, reits, cash only permitted
Max 2 accounts p/p
http://www.moneyweb.co.za/moneyweb-investment-insights/taxfree-savings-account-takes-shape (http://www.moneyweb.co.za/moneyweb-investment-insights/taxfree-savings-account-takes-shape)
Official treasury doc
http://www.gov.za/documents/download.php?f=212040 (http://www.gov.za/documents/download.php?f=212040)
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Not 100% sure I understand. Does it mean we won't get charged tax on the interest of this account, or can we take R30k per year from our income and invest it without paying tax?
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Not 100% sure I understand. Does it mean we won't get charged tax on the interest of this account, or can we take R30k per year from our income and invest it without paying tax?
The former Patrick. The latter would be a miracle. Will be of very little benefit to most of us. Starting at a young age wil heip.
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I'm almost certain the 30k annual investment limit will be reviewed and lifted on an annual basis to encourage more to people jump in. As far as I remember they used to do it in the UK with the ISA wrappers. After all they've modeled this after the UK/Europe methodology. Yes Moonraker is right. It will take roughly 16.7 years to reach your 500K limit which is probably not worth it for most of us here. But, all profit in this account will be tax free. If the investment grows by an average of 18%(using the avg STXIND return since inception) with your 30k p/annum investment cap it will grow to a nice tax free amount of over 2.4mil.