Three taxes punish South Africans for saving and investing

• Capital gains tax applies when an investor sells an asset for more than its base cost.
• There are three main areas of tax treatment for investments: interest and other income, dividends paid by companies, and capital gains from the sale of assets.
• Investors who own shares in dividend-paying companies face a 20% tax withholding on dividends, while interest earned from investments is taxed at the individual's marginal tax rate.