The tax-free investments legislation has been enacted to enable individuals to invest in these types of investments on the basis that the income and capital gains will be exempt from tax. The maximum investment will be R500 000, and the maximum amount per year invested is limited to R30 000.
The concession is intended to become operative on March 1 2015, although regulations are still required to be promulgated which identify who the administrators of the tax-free investment will be, as well as requirements relating to the types of financial instruments, and compliance and disclosure requirements. Provision is also made for:
The tax-free status of a Small Business Funding Entity;
A special allowance for land conservation in respect of nature reserves or national parks; and
Funding to small, medium and micro enterprises,
and amendments have also been made to the research and development incentive.