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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

19 Apr 2021

Quo vadis, cleantech investors?

Renewed global commitment to the environment has ignited much investment chatter, driving stocks in the cleantech and renewables space to ultra-high valuations. Foord Singapore portfolio manager, Brian Arcese…

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12 Apr 2021

Finding Inflation-beating Returns

Portfolio manager at Foord Singapore, Brian Arcese, reflects on the anniversary of the pandemic-driven sell-off and how investors can find inflation-beating opportunities in the markets.

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