Tax Free Saving

 

From March 2015, TAX FREE SAVINGS  product has been brought into the market to assist people to increas there savings.

 

All the returns and proceeds from this product are completely tax free. This means that you will not pay capital gains tax (cgt) or tax on interest and dividends.

• Contact your financial advisor to do a quote for you
• The product can be in the form of a unit trust or an endowment savings plan or a bank savings poduct or a combination.
• Currently the total minimum contribution is
•           R500.00 per month
•           It can be split for example between a R250 for a 5 year endowment and a R250 unit trust.
• The maximum tax free contribution amount is 
•         R2500.00 per month or
•         R30 0000 per year
•         up tot a total life time investmentof R500 000
  
• All the growth in interest or dividends that are gained on contributions above the maximum will be taxed at 40%. But most systems will not allow you to contribute more.
  
• You can withdraw from the tax free investment without penalties, but you cannot add the withdrawal to your savings again in the same year as the withdrawal, except when you did not reach your contract or maximum levels.
• Initial fees are applicable on the savings product.
• The investment is invested in funds without performance bonuses.