Absa Tax-Free ETF Savings Account In South Africa

Absa Tax-Free ETF Savings Account In South Africa

In our guide today, we will discuss the Absa tax-free ETF savings account in South Africa.

This product allows you to use your tax-free allowance for personal wealth creation.

You can invest in all approved ETFs to get local and offshore exposure.

First, we will show you a few things you need to note about the account.

What You Need To Know

The profits and dividends made from this account do not contribute to your existing tax annual limits.

You can reinvest the dividends in your account without utilizing the contribution limit, provided the funds are not withdrawn.

These are the key things to note about the tax-free ETF savings account in South Africa.

Requirements For Absa Tax-Free ETF Savings Account

Any South African individual can apply for this account.

There is no age limit for this account, so even minors can apply for the account.

You can apply for this account online through Absa online banking or Absa mobile banking.

Fill out the form provided and specify if the account is yours or if you are applying on behalf of a minor.

These are the requirements to apply for the tax-free ETF savings account in South Africa.

Absa Tax-Free ETF Savings Account

You get a reduced brokerage of 0.2% with no minimum, and you are not charged any monthly fee.

You get an education and all product information for every ETF you choose to invest with.

There is no securities transfer tax (STT) on the purchase made with this account.

Also no capital gains tax (CGT) for the sale of these products.

There is no dividend withholding tax (DWT) on the dividends earned from this account.

Interests earned from the account are not subject to taxation.

You get exposure to both local and offshore markets.

The maximum annual savings are R36 000, and the lifetime savings should not exceed R500 000.

This is all you need to know about Absa tax-free ETF savings account in South Africa.

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