South Africa’s National Treasury has published the final Notice and Regulations that allow for the introduction of tax-free savings and investment accounts (TFSAs) from the start of the next tax year on March 1, 2015.
The main objective is to encourage individuals to save, whilst also increasing the overall level of savings in the economy. The draft regulation states that an individual may contribute up to R30 000 per year in tax free savings and investments, with a lifetime contribution limit of R500 000. Any interest, dividends and capital gains will be tax free in the hands of the individual.
