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Tax-Free Investments - Coggle Diagram
Tax-Free Investments
Exemptions in tax-free investments
Any amount received by or accrued to a natural person
Any amount received by or accrued to deceased or insolvent estate
Includes income on the investment and profit on disposal
Exclusions of tax-free investments
From the capital gains tax provisions in the Act
Capital gains and capital losses in respect of
the disposal of a tax free investment are disregarded
Any capital gain or capital loss in respect of the disposal of the tax free investment
What are tax-free investments?
Any financial instrument or policy as defined in section 29A
Administered by any person or entity designated by the Minister of Finance (MoF) by notice in the
Government Gazette
Limitations of tax-free investments
Contributions limited to
R500 000 in aggregate for a lifetime
R36 000 in aggregate during any year of assessment
Limitations not affected by
Any transfer by a person of one tax free investment to
another
Any amount received by or accrued in respect of a tax free investment.
Income or proceeds from the tax free investment
Who owns tax-free investments?
A natural person
The deceased or insolvent estate of a natural person
Penalties for tax-free investments
Excess of R36 000 year of assessment limit
40% of excess amount deemed as normal tax payable
Excess of R500 000 lifetime limit
40% of excess amount treated as normal tax payable
Reduced by any tax paid under section 12T(7)(a)