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Tax Free Investments, Section 12T exempts income, on tax free investments,…
Tax Free Investments
Section 12T(1)
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Administered by person/ entity appointed by Minister of Finance. Notice is mad in Government Gazette.
Section 12T(2)
Any amounts received or accrued to a natural person or their deceased/ insolvent estate (if the person were deceased) due to that of a tax free investment would be exempt from normal tax.
The above point includes income on the investment as well as any potential profits from selling the investment.
Section 12T(7)
(a)
Any amounts invested that exceed the yearly limit of R36 000, will be taxed at 40% and deemed to be a normal tax payable.
(b)
Any amounts invested that exceed the lifetime limit of R500 000, will be taxed at 40% and deemed to be a normal tax payable. The amount taxed will exclude any amounts already taxed under 12T(7)(a).
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Section 12T exempts income, on tax free investments, from tax.
Section 12T(3)
Any capital gains or losses in the disposal of a tax free investment are excluded from te capital gains tax provisions.
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