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Tax Free Investments - Coggle Diagram
Tax Free Investments
What are tax-free investments
Section 12T (1) Definition
Any financial Instrument or policy
That is Administered by a person or entity designated by Ministry of Finance as per Gov Gazette.
The Ministry of Finance makes regulations on tax ree investments.
Who owns tax-free investments
a Natural person
Deceased or insolvent estate of a Natural person
Exemptions in tax-free investments
Income on the Investment
Profit from disposal of investment
Exclusions of tax-free investments
No Capital Gains Tax or Loss from Disposal of Tax free investment
Proceeds are Exempt form Tax
Limitations of tax-free investments
R 36 000 Contribution per year/ months
R 33 000 Contribution per year prior to 1 March 2020
Lifetime limti is R 500 000
No effect on contribution limits
No effect one by transfer by person
Penalties for tax-free investments
Contributions more than Limitations Limits: 40%
Contribution Limitations
R36000 during year of Assessment
Lifetime aggregate - R 500 000