Tax Free Investment Account

PPS Tax Free Investment Account

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The PPS Tax Free Investment Account is a long-term investment vehicle which allows you to contribute a maximum allowed amount per tax year and over your lifetime without being charged capital gains tax (CGT) when accessing these savings or switching underlying unit trusts, dividend tax when receiving dividends or income tax on interest earned on these contributions.

It is a tax free investment provided for by section 12T of the Income Tax Act. All proceeds are tax free. It provides the opportunity for you to structure a customised investment portfolio, tailored to your individual requirements. Construct your personalised portfolio by investing directly in a premium selection of domestic unit trusts. You can choose to invest a lump sum or recurring monthly contributions, change or cease your contributions without incurring penalties and choose your own investment period. Even though there is no minimum investment period, this tax-free investment should be viewed as a long-term savings vehicle to be used to supplement a standard retirement savings vehicle. Please note that only natural persons (individuals) may invest in the PPS Tax Free Investment Account.

Read about the Product Features

Read the Savings Brochure

FEATURES AND BENEFITS

Minimum

Lump sum: R2000

Recurring: R500 per month*

Ad hoc: R1000

* The minimum recurring debit order amount if you are under the age of 30 is R200 per month, which should be escalated to the normal minimum of R500 per month after your 30th birthday.

Maximum

The maximum capital contribution per tax year is R33 000. The maximum lifetime contribution is R500 000. Any contributions over these limits will be taxed by the South African Revenue Service (SARS) at 40% of the excess contribution value.Growth and the reinvestment of interest and dividends in the PPS Tax Free Investment Account do not count towards the contribution limits. Annual and lifetime contribution limits are capped and withdrawals from your PPS Tax Free Investment Account cannot be replenished. The limits apply with regards to total contributions across all product providers and not on a per-product-provider basis. We will monitor your contributions to your PPS Tax Free Investment Account to ensure that you stay within the legislated limits. We are however not responsible for any contributions placed with another product provider.

Investment options

You have access to a selection of our multi-managed PPS Portfolios and a selection of single manager unit trust funds. Please consult the Select Fund Range Investment Option Schedule available for the PPS Tax Free Investment Account. These unit trusts may not have a performance fee structure or invest in any vehicles or funds that charge a performance fee.

Personalise your investment

Choose your own investment name and reflect the goals your PPS Tax Free Investment Account is helping you work towards (e.g. “My additional retirement savings”). While your product particulars and investment details will remain exactly the same, your chosen name is the one we’ll use in all relevant correspondence with you. Please note, however, that the product does not guarantee performance in line with your personalised product name.

Transfers

You are permitted to transfer your Tax Free Investment Account between product providers.

Switching

You may change your selection of underlying unit trusts as often as you choose without incurring a transaction fee.

However, should an asset manager charge an initial upfront fee for investing into its unit trusts, this fee would be applied should you switch to those unit trusts.

Cessions

Transfer of ownership of your PPS Tax Free Investment Account will not be allowed. You may use your PPS Tax Free Investment Account as security by way of a security cession agreement.

Loans

You may not borrow from your PPS Tax Free Investment Account.

Withdrawals

There are no restrictions on withdrawals from your PPS Tax Free Investment Account. You have the flexibility

to set up regular withdrawal payments or make ad hoc withdrawals for a portion or all of your investment at any time.

Tax

Tax in product

No tax is payable on interest, dividends or realised capital gains or losses incurred on your investment.

Tax on excess contributions

If you exceed your annual contribution limit of R33 000 or your lifetime contribution limit of R500 000 (as stipulated in the Income Tax Act) this will lead to a penalty tax of 40% on the excess contribution amounts. This penalty will be imposed by the South African Revenue Service (SARS) at the end of the tax year.

Tax at death

All interest and dividends earned during the calculation of the estate will be tax free.

Death benefits

Upon death, your PPS Tax Free Investment Account will form part of your estate and will be allocated through your estate to your beneficiaries as nominated therein. The amount within your PPS Tax Free Investment Account cannot be transferred to your beneficiary’s tax-free investment.

Withdrawals

You have unrestricted access to the savings within your PPS Tax Free Investment Account and can make full or partial withdrawals from the investment. However, annual and lifetime contribution limits are capped and withdrawals cannot be replenished.

FORMS AND DOCUMENTS

Once you have selected your solution, you're then able to structure your solution using the carefully constructed or selected funds we have available to you.

PPS Funds
Select the option suitable to you
We build diversified funds across managers and strategies to achieve consistent performance over time. Our experienced investment team manages the asset allocation and manager combination of each solution. You just need to select the appropriate multi-managed fund.
View our PPS Funds>>

Other Funds
You select from managers on our platform
You choose the appropriate combination of funds from our pre-approved list to construct the solution you want. Our online functionality allows you to manage your overall asset allocation and change the combination of funds at any time.
View other Funds >

Depending on your preference, there are a few ways you are able to invest with us.

Invest via an adviser
We always recommend seeking the advice of an experienced and qualified financial adviser to help you set financial goals, save sufficiently for these goals and stick to your investment plans. Should wish to find a PPS Investments accredited adviser, leave your details here and someone will contact you shortly.

Invest Now
With the InvestNow functionality, you're able to place new investments, top up existing investments, switch or make withdrawals. And in-app notifications keep you updated on the progress of your transactions. A nifty retirement calculator and access to key documents like tax certificates are added benefits. Click here to use this functionality.

Printing and completing an application form
You're also welcome to print the application form and send it to our Validations Team at admin@ppsinvestments.co.za. For any further support, our dedicated client service teams are available between 8:00 and 17:00, Mondays to Fridays at 0860 468 777 or clientservices@ppsinvestments.co.za to assist you with your transaction.

Home | Directors | Professional Provident Society Investments Proprietary Limited ("PPS Investments") (39270), Professional Provident Society Multi-Managers Proprietary Limited ("PPS Multi-Managers") (28733), PPS Investment Administrators (45924) and Professional Provident Society Insurance ("PPS Insurance") (1044) are licensed Financial Services Providers.

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PPS Solutions

​​PPS Tax Free Investment Account

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​PPS Funds

Select the option suitable to you

We build diversified funds across managers and strategies to achieve consistent performance over time. Our experienced investment team manages the asset allocation and manager combination of each solution. You just need to select the appropriate multi-managed fund.

View our PPS Funds>>​

​

You select from managers on our platform

You choose the appropriate combination of funds from our pre-approved list to construct the solution you want. Our online functionality allows you to manage your overall asset allocation and change the combination of funds at any time.

View other Funds >

​

Printing and completing an application form

PPS Tax Free Investment Account

PPS Funds

View our PPS Funds>>