Real Estate Investor Magazine South Africa June 2015 | Page 44

LISTED

Retail Investors Offered Tax

Free Savings Accounts
New Tax Free Savings Accounts
good for long term growth and
returns on investment
BY MPHO LEDWABA

I

n a bid to help South Africans adequately prepare
for their financial future the Johannesburg Stock
Exchange ( JSE) is pleased to announce the launch
of its Tax Free Savings Account (TFSA) initiative.
The offering of TFSAs will add to the JSE’s range
of existing initiatives aimed at improving retail
participationon the exchange. It is our intention to
support and improve South Africa’s culture of savings
by providing investment products through a tax free
savings account.
The new tax free savings regulations effective from
1 March was initiated by the National Treasury to
imrove savings amongst South Africans and reduce
household indebtednes. The JSE’s TFSA intends to
align with the National Treasury’s goal, but also ensure
that investors are given access to the exchange in a cost
effective manner.
The JSE’s offering will be rolled out in collaboration
with approved stockbrokers in providing a platform
which allows for individuals to invest in selected JSE
listed instruments, such as Collective Investment
Scheme (CIS) Exchange Traded Funds tax free. These
ETFs will enable investors to diversify their risk by
buying into a basket or variety of securities through a
single product security.

One of the common barriers to investing is the lack
of financial knowledge about the various financial
products that are on offer.
The JSE’s TFSA offers potential investors the following
features and benefits:
• Investment in pre-selected Exchange Traded
Funds
• Limited to investing R30 000 annually and
limited to a R500 000 lifetime contribution
• No tax on interest earned
• No Dividend Withholding Tax on dividends
earned
• No Capital Gains Tax
• No Securities Transfer Tax on purchases
As a contributor to South Africa’s economy, the role of
the JSE is to not only support economic growth, but to
ensure that we encourage South Africans to participate
in private sector investent. TFSAs will ensure that we
inc