Tax amendments addressing the low levels of household savings in South Africa

SINCE government wishes to address the low level of household savings in South Africa and SINCE government is desirous of allowing providers of financial products to market financial products in a manner that creates a partnership between government and those providers of financial products to encourage household savings, the following legislation has accepted:

Section 12T of the Income Tax, 1962, and regulations are enacted to enable providers of financial products to provide financial products that are simple to understand; that are offered in a transparent manner; carry fees and charges that are reasonable; and that are suitable for those persons who are not necessarily expert investors.

 

For the regulations on tax free investments see: http://www.gov.za/sites/www.gov.za/files/38509_rg10372_gon172_0.pdf