Yes, you can open a tax-free savings account (TFSA) for your child in South Africa if they are younger than 18 years old. However, there are some conditions that you should be aware of:
- You, as the parent or legal guardian, will need to open the account on behalf of your child.
- The annual contribution limit for a tax-free savings account is currently R36,000 per year. This means that you can contribute up to this amount to your child's account each year without incurring any tax.
- The account will be in your child's name, but you will have control over the account until they turn 18 years old.
- Any interest or other returns earned on the account will be tax-free.
It's important to note that once your child turns 18 years old, they will have full control over the account and will be able to make withdrawals or contributions as they wish. Also, keep in mind that tax laws and regulations may change, so it's always a good idea to stay up-to-date on any updates or changes to the tax-free savings account rules.