Government introduced tax free investments in 2015 as an incentive to encourage household savings.
You don’t have to pay income tax, dividends tax or capital gains tax on the returns from these investments.
You can only contribute a maximum of R33 000 per tax year, with a life time limit of R500 000 per person.
Accounts that qualify as tax free investments:
- Fixed deposits
- Unit trusts (collective investment schemes)
- Certain endowment policies issued by long-term insurers
- Linked investment products
- Exchange traded funds (ETFs) that are classified as collective investment schemes.
Contact your bank or financial advisor about options. Existing accounts may not be converted.
More information about tax free investments is available from SARS.
- Call the SARS Contact Centre on 0800 00 SARS (7277)
-
Visit your nearest SARS branch.
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