Individuals investing in approved tax-free savings accounts are exempt from tax on those approved accounts.
This tax exemption is based on individual capacity, which means the following:
- Single limit
Even though an individual investor may have several tax-free savings accounts, they are subject to the one limit of R33 000 per tax year across all the approved TFSA accounts they hold.
- No Company or Trust
Tax-free savings accounts can only be opened in the name of an individual and not that of a company or trust.
It is the sole responsibility of the individual to ensure that they do not exceed the stipulated limits that apply to TFSA products.
SatrixNOW will try and put controls in place where possible to warn our investors against exceeding the limits, but the responsibility lies with them, particularly where they have other TFSA accounts held elsewhere.