Interest Exemptions
Interest from a South African source earned by any natural person is exempt, per annum, up to an amount of:
22 February 2023 – No changes from last year:
| | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|
| Person younger than 65 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 | R23 800 |
| Person 65 and older | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 | R34 500 |
Withholding Tax on Interest
22 February 2023 – No changes from last year.
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 earned by non-residents who are physically absent from South Africa for at least 182 days (2023) (2022 and 2021 it was also 182 days and 2020 it was 183 days) during the 12 month period before the interest accrues and the debt from which the interest arises is not effectively connected to a fixed place of business in South Africa, is exempt from income tax.
For more information see Withholding Tax on Interest (WTI).
Dividends Tax
22 February 2023 – No changes from last year.
Dividends received by individuals from South African companies are generally exempt from income tax, but dividends tax at a rate of 20% is withheld by the entities paying the dividends to the individuals.
For more information see Dividends Tax.
Foreign Dividends
22 February 2023 – No changes from last year.
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 20%. No deductions are allowed for expenditure to produce foreign dividends.
