Are you interested to learn about Absa tax-free investment account in South Africa? Then check out this article.
This product allows you to invest in various funds with 100% exemption from income and capital gains tax.
The account allows you to create a personalized investment portfolio from a range of local collective investment schemes and JSE-listed exchange Traded Funds (ETFs) available through the Absa investment management services (AIMS) platform.
We will first show you why you need this account.
Who Is The Ideal Investor
The product is best suited for you if you are interested in investing in long-term goals.
If you want flexibility and choice in creating your portfolio, this is your proper account.
The account is handy when you want to take advantage of tax-free opportunities in South Africa.
These are some reasons you need an Absa tax-free investment account in South Africa.
Absa Tax-Free Investment Account
You can invest up to a maximum of R36 000 per year and a lifetime investment of up to R500 000 tax-free.
You can invest with a minimum monthly debit order of R250 or a lump sum payment of R5 000 subject to funding minimums f R250 per CIS fund and R500 per ETF.
The investment term is flexible, contributions, portfolio adjustments, and a comprehensive range of CIS and ETFs.
Transparency is key to this account, including all the fees charged, and you get quarterly reports of your account holdings, investment values, and all transactions made.
You can not use this product as collateral for a loan.
You can transfer the savings in this account to product providers in part or whole without incurring any reductions in your annual and lifetime limits.
This is how the Absa tax-free investment account works in South Africa.
What Are The Tax Implications
You are not taxed for dividends, rental, and interest income from this account.
If you do not comply with the annual and lifetime contribution limit, SARS will tax your savings accordingly.
All capital gains from the disposal of units in the product are not subjected to the capital gains tax.
Absa does not offer any tax advice, so you need to consult a professional tax advisor before investing.
This is all you need to know about Absa’s tax-free investment account in South Africa.