Are you saving for a long-term goal such as acquiring your first car or home? Then enjoy the benefits of a TAX FREE Long Term Savings Account (LSA) where you can set aside funds and earn the best possible interest rate while having access to your funds.
Under the new Withholding Tax Regime, investments and deposits made in a specially designated Long-Term Savings Account (LSA) are exempt from income tax provided that:
The principal sum remains in the account for at least 5 years.
The maximum amount which may be invested in any one calendar year, is $1.0 million, up to a maximum of $5.0 million over 5 years. L.S.A. account holders are permitted to withdraw up to 75% of the interest credited to the account, quarterly. At least 25% of the interest earned must be left in the account to be reinvested to the end of the 5-year period.
Encashment prior to the 5-year period results in the interest earned being immediately subject to withholding tax.