Make your savings work harder by investing tax free. With the Coronation Tax-Free Investment , you don’t pay tax on your investment returns – both while you’re invested and when your investment pays out. The taxes you save remain invested to grow, which can make an enormous difference over the long term.
Tax free means:
- No tax on interest or other income
- No dividend tax
- No capital gains tax
At Coronation, you will also not pay any initial fees or annual administration fees. The only fees payable are the annual management fees applicable to the underlying fund/s you choose to invest in.
|TAX-FREE INVESTMENT ADVANTAGES||TAX-FREE INVESTMENT LIMITATIONS|
You can choose to invest in a range of Coronation funds, tax free. You can also withdraw money and switch between funds without any costs or penalties.
Choose one or more of the following funds:
- Coronation Market Plus
- Coronation Global Managed [ZAR] Feeder
- Coronation Global Capital Plus [ZAR] Feeder
- Coronation Global Strategic USD Income [ZAR] Feeder
- Coronation Strategic Income Fund
- Coronation Property Equity
- Coronation Money Market
- Coronation Jibar Plus
- Coronation Bond
- Coronation Financial
- Coronation Industrial
- Coronation Resources
- Coronation Smaller Companies
|Minimum Investment Amount||LUMP SUM||R5 000 (The minimum lump sum for the Coronation Money Market Fund is R10 000)|
|RECURRING||Debit orders are not yet accepted, but will be available soon.|
You can invest up to R30 000 tax free every tax year (March 1st to end-February of the next year) and up to R500 000 over your lifetime. These limits are legally set and apply across all tax-free products you invest in (not per product). If you exceed them, you will pay a penalty tax of 40% on the additional amount invested.
In addition, all amounts you invest will count towards your annual and lifetime limits regardless of any withdrawals you make - you cannot 'replace' the money you withdraw with a new investment. For example, if you invest R30 000 this tax year and then withdrew some or all of your savings, any further investment during the tax year will be taxed at 40%.
SAVING FOR YOUR CHILDREN
Children can also receive the benefits of tax-free investing. By opening a tax-free investment on behalf of your child, you unlock the full power of compounding on their long-term savings.
The principle of compounding is simple - the returns earned on an investment also start earning returns. What this means is that the tax-free dividends and interest earned in the Coronation Tax-Free Investment are immediately put to work by being automatically re-invested. This results in your child’s investment growing at an ever-increasing rate, year after year. Over the long term, this can make an enormous difference.
Each child has a personal tax-free allowance of their own. Please note that a bank account in your child’s name will be required for all withdrawal payments from his or her Coronation Tax-Free Investment. Your savings on behalf of your children may be subject to donations tax, should it exceed the annual allowance.