What is Tax Free Savings?
The Tax Free Savings platform was created for the investor who has already exerted all the tax benefits from the retirement platform and wants to invest more funds for long term savings. These funds are not taxed at all and these funds are also accessible at any stage.
The benefit is however capped per individual, each individual is allowed a maximum of R33 000 per annum to contribute to this platform and to a total of R500 000 in funds contributed per lifetime. This means if funds are contributed and withdrawn it decreases your lifetime benefit.
Why choose a Tax Free Savings investment?
When an investor wants to contribute more than the deductible tax benefit available for retirement savings and the investment is focused on long term investment the Tax Free Savings is the right product, it offers you all the benefits of a Unit Trust with the tax benefit on top of it all.