As the name implies, all profits / earnings within the TFSA are 100% tax free. When investing in a TFSA you are not taxed on:
- Capital Gains Tax
- Dividend Withholding Tax
- Interest Income Tax
Any profits made on the investment do not form part of the investors annual or lifetime limits. This means that you can reinvest the interest, capital gains and dividends, growing your investment even more.
You can deposit (within limit) or withdraw whenever you like and can choose how you want to invest - with lump sums, regular investments or a combination of both.
You have the choice of investing in over 50 different approved ETFs (Exchange Traded Funds), baskets or bundles to suit your particular risk profile.
Some ETFs track indices in global markets allowing investors to gain international exposure and add global brands to their TFSA portfolio.