What is it?
The South African National Treasury has approved the implementation of a tax-free savings account (TFSA) as an incentive to encourage individuals to save. The aim is to increase saving over and above retirement based-savings through a more accessible, tax-free product. From 1 March 2015, individual investors can invest up to R33 000 a year in tax-free savings accounts. While the capital investment will be capped at R500 000 over the investor’s lifetime, all proceeds earned (interest, dividends and capital growth) will be 100% tax free.
How i contribute?
You are able to contribute in a lump-sum and/or an on-going contribution by debit order. You are able to invest R33 000 a year (R2 750 a month) and up to
R500 000 over your lifetime in your TFSA.
WHAT ABOUT TAX?
What are my options?
- You can access a TFSA via Mianzo Asset Management.
- The unit trust option offers a range of unit trusts managed by Mianzo Asset Management.
- Mianzo Asset Management offers a tax free savings account where clients can choose a portfolio of shares to suit their individual needs.
How do I withdraw?
- Withdrawals can be taken at any time, however, whatever is withdrawn cannot be replaced.
- Individual investors 48 hours notice period.
What about transfers?
- The National Treasury has postponed the implementation of transfers between providers. We will advise our clients once transfers are permitted.