Tax-free Investment Account (TFIA)

Tax-free Investment Account (TFIA)A simple, tax-efficient way to grow your wealth over time by investing in Johannesburg Stock Exchange (JSE)-listed Exchange Traded Funds (ETFs). Whether you’re starting your investment journey or building long-term wealth, a Tax-Free Investment Account (TFIA) can help you invest smarter by reducing the impact of tax on your returns.

Benefits

Grow your investments tax-freeAny returns earned in your TFIA are free from tax, including: Interest, Dividends, Capital gains.

Invest in diversified ETFsGain exposure to a wide range of JSE-listed companies through Exchange Traded Funds (ETFs).

Instant funding and withdrawalsEasily fund your account and access your money when needed through the Shyft platform.

Earn interest while you wait to investMoney held in your Shyft ZAR Vault can earn daily interest before you invest it into the market.

sustainability, ESG, ESG investing, investing in sustainability, Penny Byrne, SBG Securities

Key tax benefitsNo Capital Gains Tax (CGT) on investment growth. No Dividend Withholding Tax (DWT) on dividends earned. No Tax on interest earned. No Securities Transfer Tax (STT) on qualifying investments.

Typical usesLong-term wealth building in a tax-efficient way. Saving for retirement (as a supplement to other investments), and Education or future goals. Building a diversified investment portfolio without tax drag. Best suited for Investors with a long-term horizon (5+ years) and those looking to maximise after-tax returns.

Key risks and considerationsExceeding limits may result in tax penalties. Returns depend on the performance of underlying investments (e.g. ETFs or funds). No tax deduction on contributions: contributions are made from after-tax income. Withdrawals reduce the value of your investment and cannot be replaced within the lifetime limit.

How TFIA works?You invest money into the account, within annual and lifetime limits set by regulation. There is a R46 000 annual contribution limit and a R500 000 lifetime contribution limit per individual.  Your money is invested in products such as ETFs listed on the JSE.

How TFIA works?Profits made in the  TFIA do not consume existing tax annual limits (interest and capital gains).  Profits may be re-invested in the TFIA without using the contribution limit, provided they are not withdrawn.  All returns earned remain tax-free, as long as you stay within contribution limits.

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