INVESTING 101 > TAX-FREE INVESTING

Tax-Free Investments

 

Supercharge Your Compounding

Small investments grow large over time, so it makes sense to invest every rand you can. What if you could invest a little extra without even trying? Welcome to tax-free investing.

How Tax-Free Investing with Satrix Works

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Every SatrixNOW account comes with a tax-free investment account

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Choose the tax-free version of any ETF or unit trust available through SatrixNOW

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Deposit up to R46,000 a year into your chosen fund/s, up to a lifetime value of R500,000 (these are the limits set by SARS)

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Pay no tax on the interest, dividends or capital gains that your investment generates

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Reinvest all the tax you save (no finger lifted, SatrixNOW does this for you)

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Experience supercharged compounding

Why is Tax-Free Investing Such a Big Deal?

 

If you were supremely disciplined about using your full tax-free investment allowance, here’s what could happen:

 

If you were supremely disciplined about using your full tax free investment allowance, here’s what could happen:
Reach your lifetime limit of R500,000 by investing R46,000 every year for about 11 years. 
By the time you make your final contribution, your investment could already be worth around R850,000¹.
With no further contributions, it could grow to about R1 million in less than two years, purely through compounding.
Because your investment is tax free, you could save around R82,500 in capital gains tax² that you might otherwise have paid.


Leave it invested and it could grow to:


• R2 million in about seven years, and
• R4 million in about 14 years.
 

1Assumes the ETF or unit trust selected grows 10% per year.

2Estimate for investors in the highest tax bracket.

 

Invest Now  View Full Product Range

 

If you have children, you can open an account for them from birth. What a head start they’ll have. Read More

 

The Do's and Dont's of Tax-Free Investing

 

DO
Do think of it as a long-term investment vehicle, as the effects of paying no tax get more powerful over time.
Do favour funds that hold growth and dividend-paying assets like equity and property.
Do favour local equity exposure as you’ll pay tax on dividends from offshore companies.
Do invest your bonus or any money received back from SARS.
DON'T
Don’t make withdrawals as they permanently decrease your annual and lifetime limits.
Don’t invest more than the yearly limit as anything extra will be taxed at a hefty 40%.