Print Page
News & Press: Corporate Tax

The no-go zones of tax-free savings accounts

Tuesday, 18 November 2014   (0 Comments)
Posted by: Author: Ingé Lamprecht (Moneyweb)
Share |

Author: Ingé Lamprecht (Moneyweb)

Products with performance fees excluded.

Products that charge performance fees will not qualify for inclusion in tax-free savings accounts, National Treasury says.

This proposal was revealed in a draft notice and regulations it issued on Friday. It seems that these types of products do not adhere to the principles of simplicity, transparency and suitability treasury has set as benchmarks for inclusion.

Cecil Morden, chief director for economic tax analysis at National Treasury, says the concern is that the nature of the fees investors will have to pay is uncertain.

Performance fees can also fluctuate quite a lot and can become rather costly, especially for an uninformed investor, he says.

Tax-free savings accounts are due to be introduced on March 1 next year, but are still a work in progress and consultation is ongoing. Following its introduction investors would be allowed to contribute R30 000 a year to a tax-free savings account. A lifetime capital contribution limit of R500 000 will apply. All proceeds on amounts invested in these accounts will be tax-free.

Please click here to view full article.



Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

  • Tax Practitioner Registration Requirements & FAQ's
  • Rate Our Service

    Membership Management Software Powered by YourMembership  ::  Legal