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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.

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