Skip to main content
This website uses cookies. Read more. Okay
04 Mar 2015

Tax Free Savings Accounts

Tax Free Savings Accounts (TFSA) were recently authorised to “go live” from 1 March 2015. The final regulations on the requirements for tax free investments were issued last week. 

TFSAs allow investors and savers to earn "tax free" income and capital gains. This means that interest earned will be tax free, dividends will not be subject to dividends withholding tax and gains made on disposal of tax free investments won't attract capital gains tax. Instead of reporting income and gains on IT3B and 3C reports, new formats will be introduced to ring-fence tax reporting on these accounts.

Certain restrictions apply including an annual limit of R30 000 per taxpayer, and a lifetime contribution limit of R500 000. Existing investments may not be converted to tax free accounts.

As a result of the prohibition of the use of performance fees in TFSAs, Foord will only launch these accounts later in 2015. Investors will be able to benefit from the tax savings in the current tax year.

Insights

14 Jan 2021

Year in review

We will remember 2020 as the year COVID-19 dramatically impacted our lives. Portfolio manager Mike Townshend looks at the year that was.

Read more

10 Dec 2020

Foord Global Funds boost SA performance

Returns on Foord’s South African multi-asset funds rank near the top of their respective peer groups this year as might be expected from Foord during especially troubled markets. The two Foord global funds buoyed…

Read more
newsletter subscription