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Tax Free Investments Section 12T - Coggle Diagram
Tax Free Investments Section 12T
What are tax free Investments?
Any financial instrument/policy that is administered by any person/entity designated by the Minister of Finance by notice in the Government Gazette
Section 12T(1)
What are exclusions of tax-free investments?
Section 12T(3)
Any capital gain/loss in respect of the disposal of the tax free investment from the capital gains tax provisions in the Act
What are the penalties for tax-free investments?
Section 12T(a)
If the limit of R36 000 is exceeded, 40% of the excess is deemed to be normal tax payable in the year of assessment
Section 12T(b)
If the limit of R500 000 is exceeded, 40% of the excess is treated as normal tax payable (reduced by amount paid under Section 12T(a))
What are the limitations of tax-free investments?
Section 12T(4)
R36 000 in aggregate during any year of assessment (R33 000 prior to 1 March 2020)
R500 000 in aggredate
What are exemptions in tax-free investments?
Section 12T(2)
Any amounts received/accrued to a natural person, or to the deceased/insolvent estate of a natural person, in respect of a tax-free investment
Including income on the investment as well as any profit arising on the disposal on the investment
Who owns tax-free investments?
A natural person
The deseased or insolvent estate of a natural person