Interest and dividends tax rates

Interest Exemptions

Interest from a South African source earned by a natural person is exempt, per annum,†up to an amount of:

? 2017? 2016? ?2015 ?2014 ?2013
?Person younger than 65 ?R23 800 ?R23 800 ?R23 800 ?R23 800 ?R22 800
?Person 65 and older ?R34 500 ?R34 500 ?R34 500 ?R34 500 ?R33 000

Please note: For the 2012 tax year – Foreign interest and foreign dividends are only exempt up to R3 700 out of the total exemption.

From 1 March 2015 (2016 tax year),†a final withholding tax at a rate of 15% will be charged on interest from a South African source payable to non-residents.

Interest is exempt where earned by a non-resident who is physically absent from South Africa for at least 183 days during the tax year and doesn’t carry on a business in South Africa.

Dividends Tax

As from 1 April 2012,†dividends tax is charged at 15% on shareholders when dividends are paid to them by a South African tax resident company or Foreign Company whose shares are listed on the JSE.

STC was payable by South African resident companies at a rate of 10% on dividends declared on or before 31 March 2012.† STC was replaced with dividends tax on 1 April 2012.

Foreign Dividends

For tax years 2013 -†2017 – Most foreign dividends received by individuals from foreign companies (shareholding of less than 10% in the foreign company) are taxable at a maximum effective rate of 15%. No deductions are allowed for expenditure to produce foreign dividends.