SatrixNOW Tax Free Savings Account FAQs

A Tax-Free Savings Account (TFSA) is an investment vehicle introduced by the South African Government in 2015 to encourage savings and increase the overall level of savings in the economy. It allows individuals to invest without incurring tax on the earnings and profits generated within the account.

The SatrixNOW TFSA offers various advantages:

• Tax-Free Earnings: Profits and earnings within the TFSA are 100% tax-free, including income, interest, and capital gains. provided investors do not manage multiple accounts that may see them breach their annual and lifetime contribution limits.

• Flexibility: Investors can deposit or withdraw funds at their convenience, choosing between lump-sum investments, regular contributions, or a combination of both. Additionally, investors can switch between funds without impacting their annual or lifetime limits.

• Investment Variety: SatrixNOW TFSA provides access to Exchange Trade Funds (ETFs) and unit trusts, offering investors a diverse range of investment options.

• Growth Potential: Profits made within the TFSA don't count towards annual or lifetime limits. Reinvesting interest and dividends allows for potential growth without impacting contribution limits.

Upon registering with SatrixNOW, clients are automatically provided with a tax-free savings account at no cost. Accessing the TFSA is simple: Log into your account, and select the TFSA option from the dropdown menu below the Satrix logo.

National Treasury has set specific limits for Tax Free Savings Account contributions:

• Annual Limit: Individuals can invest up to R36 000 per tax year, from March 1st to the last day of February the following year.

• Lifetime Limit: The maximum lifetime contribution is capped at R500 000. Staying within the annual limit means reaching the lifetime limit after 16 years of contributions.

Exceeding the annual or lifetime limits incurs penalties, with SARS imposing a 40% tax on contributions surpassing these thresholds.

Please Note:
Satrix monitors TFSA thresholds for our clients on the platform. However, individuals with multiple TFSA accounts across various platforms must take responsibility to ensure that their annual contributions do not surpass the stipulated yearly limit. If a client’s TFSA annual limit surpasses the defined threshold, funds will be automatically allocated to the standard SatrixNOW account to prevent any penalties imposed by SARS.

No, there's no rollover of unused contribution limits. Unutilised amounts from previous years cannot be carried forward.

Once the annual limit is reached with deposits, no further contributions are allowed in that tax year, irrespective of withdrawals made. In other words, you cannot replace withdrawals made within the year.

Individual investors can hold multiple Tax Free Savings Accounts but are subject to the R36 000 annual limit across all accounts collectively. TFSA accounts cannot be opened in the name of a company or Trust but minors can have a TFSA opened in their name.

There's no specific duration for investment. Investors have the freedom to decide when to buy or sell investments and for how long to keep their accounts open.

There are no limitations on dividends earned from Satrix Exchange Traded Funds (ETFs) and unit trusts within the TFSA. Dividends and any growth on your investment do not impact your annual contribution limit.

Unfortunately, some foreign dividends do incur tax. In your transaction history, a line item will indicate dividends paid into your account and a further line item will indicate dividends tax being charged against these dividends.

Your Tax-Free Savings Account is exempt from local-based taxes (capital gains, dividends withholding tax, securities transfer tax). However, in the case of a dividend paid by a dual listed company where the dividends tax is withheld by the foreign company paying the dividend, these are not exempt from the dividends tax and will be deducted from your account.

Contributing to a family member's TFSA counts against their annual and lifetime limits and not your own because they would be the benefactor.

Please Note

If a clients TFSA annual limit surpasses the defined threshold, funds will be automatically allocated to the standard SatrixNOW account to prevent any penalties imposed by SARS.

After the Tax Free Savings Account holder's death, the account proceeds (deposits and earnings) are considered part of their estate and subject to Estate Duty as defined in the Estate Duty Act.

Yes, you can transfer your tax-free investments to your SatrixNOW TFSA following these instructions:

1. Ensure you have an active FICA verified SatrixNOW account. If not, register online here.

2. Obtain your SatrixNOW TFSA account number by clicking on the TFSA tab and selecting Account Overview.

3. Complete Section A (Investor Details) of the SatrixNOW TFSA Transfer form.

4. Enter your TFSA account number in the highlighted cell under Section B (Transfer To).

5. If opting for a partial transfer, complete Appendix A.

6. Email the form to your current broker and to helpme@satrixnow.co.za.

Please Note:

Regulations specify that transfers of tax-free investments must not occur in the last 10 business days of a tax year to prevent issues with annual and lifetime contribution limits. Transfers typically take 2-4 weeks due to multiple involved parties.