FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Definition of a Tax free savings account?

Posted 17 May 2015

Sam says:
13 May 2015 at 15:01

I am interested to know 'what is the definition of a 'tax free savings account''? Will I have to open a new account or will any savings account qualify for the R30 000 deduction?

TaxTim TaxTim says:
13 May 2015 at 18:30

These are special accounts set up by the banks and institutions. You will need to do some research as to which one to go for. Essentially it means that no tax is charged on the interest, dividends or growth of the fund. It is not a R30 000 deduction, but an exemption from tax on the returns from the investment.

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.