Tax Free Non-Retirement Savings . . . .
In the 2014 budget review, the Minister announced the implementation of tax free savings accounts as an incentive to encourage household savings.
In terms of the draft Bill individuals may open multiple tax free savings accounts that may each invest in different ‘tax free investments’, however they may only contribute up to a maximum of R30 000 into these investments within a tax year.
The R30 000 annual contribution limit applies to the contributions across all their tax free investments. A lifetime contribution limit of R500 000 will also apply. The returns accruing to these investments will be exempt from income and dividends tax. Amounts within the tax free investments may be withdrawn at any time, however if these amounts are returned to the tax free investments, those amounts will subject to the annual contribution limit. Transfers between tax free investments at different service providers will not count towards the annual contribution limit.
Read the full story on this tax law amendment bill here