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.