Please enable JavaScript.
Coggle requires JavaScript to display documents.
Tax-free investments - Coggle Diagram
Tax-free investments
Exemptions in tax-free investments
income
on the investment
Any profit arising on the disposal of the investment.
Interest, dividends and growth are tax free
Penalties for tax-free investments
If the annual contributions are more than R36000, 40% penalty on the excess amount
If lifetime contributions are more than R500 000, 40% penalty on the excess amount.
Penalty is treated as normal tax
Limitations of tax-free investments
R36 000 in aggregate during any year of assessment
R500 000 in aggregate (Lifetime)
income or proceeds from the tax free investment do not affect the contribution
limits.
Who owns tax-free investments?
A natural person
The deceased or insolvent estate of a natural person
Exclusions of tax-free investments
capital gains and capital losses in respect of
the disposal of a tax free investment
Contributions must be made by cash
What are tax-free investments?
any financial instrument or policy as defined in section 29A
that is administered by any person or entity designated by the Minister of Finance (MoF) by notice in the
Government Gazette