ALL FAQs

How is interest paid to a non-resident from a South African source taxed?
As from 1 March 2015 interest from a South African source paid to a non-resident will be taxed at a final withholding tax rate of 15%.

Will non-residents be required to declare interest subject to withholding tax on their income tax returns?
Under normal circumstances they will not have to since they are not tax resident in South Africa and section 10(1)(h) exempts the interest from normal tax. However, if the provisions of section 10(1)(h) are not met

When is the WTI levied?
The withholding tax must be withheld when any interest is paid to a non-resident on or after the effective date of 1 March 2015. Interest for the purpose of the withholding tax

What is meant by “due and payable”?
For an amount to become due and payable, the amount must not only be owing, but due to be paid. The right to claim payment of interest will be depend on the contract

When does accrual of interest occur?
Interest will accrue at different accrual periods as contractually agreed between the parties, that is, either monthly, bi-monthly, quarterly etc. For example, where it is contractually agreed

Is the WTI applicable to interest due and payable before the effective date but only paid after the effective date?
No, as the interest is due and payable before the effective date no withholding tax would be required to be withheld when the payment of the interest is made. See, “When is the WTI levied?”

Is the WTI applicable to interest due and payable for the quarter ending March 2015?
Interest due and payable for the quarter ending March 2015 (January, February and March) will only become due and payable at the end of March 2015. As the interest for the quarter

When is interest payable by a bank to a foreign person exempt from the withholding tax?
Interest paid by a SA Bank directly to a foreign person is exempt from the withholding tax. This exemption will not apply when a foreign person invests an amount with a bank and

Is interest payable on funds held in a trust account as envisaged in section 21 of the Financial Markets Market (FMA)?
Section 21 of the FMA requires that every authorised user must open and maintain a trust account at a bank designated for client funds. The client funds held at the designated

Must the Return for Withholding Tax on Interest (WT002) be submitted monthly?
No, the WT002 only needs to be submitted for the months in which tax has been withheld and paid. E.g. If no tax is withheld and paid for April, no return and tax payment need to be made in May.

Why is the Payment Reference Number (PRN) not available to clients for WTI?
Withholding Tax on Interest (WTI) payments can only be made on eFiling. The PRN will automatically be generated when processing the payment and is shown on the Payment Initiation Results page starting with SARSEFILNG.

Why has a “Delete” button been included for WTI on eFiling and not any other tax types?
A delete button has been included on the WTI Work page to allow a user to remove a return they are not liable to submit. The Return for Withholding Tax on Interest (WT002)

I can’t pay using a credit push transaction on eFiling. Are there any alternative methods to pay Withholding Tax on Interest (WTI)?
No, there are no alternative ways to pay WTI. WTI can only be paid to SARS electronically via eFiling. See www.sars.gov.za>types of tax>Withholding Tax on Interest>How to pay WTI on eFiling.

Is there a Statement of Account (SOA) available for WTI?
Currently there is no SOA available for WTI, SARS will notify clients once this become available.

Will I be able to submit a Request for Correction (RFC) for WTI?
Yes, you will be able to submit a revised declaration for WTI. Please note that any overpayments that result from an RFC can be used to pay subsequent returns or requested for refund.

When will the IT3-01 – Certificate Information be updated, as companies will need to issue clients with certificates, due to their financial year ends, to account for the amount withheld?
The IT3-01 – Certificate Information will be updated. SARS will notify clients once this is available.

What is the minimum amount that doesn’t need to be paid to SARS or refunded to a taxpayer?
Tax debt due to SARS or a refund, due to a taxpayer, amounting to R100 or less need not be settled or refunded, but will remain on the taxpayer’s account. However,

Many companies pay interest quarterly. What amount of WTI must be withheld, 15% of the full amount paid in Mar for interest due in Jan, Feb and Mar or 15% of the Mar interest amount due, as WTI only became effective 1 March 2015?
WTI is triggered on the earlier of the date the interest is paid, or becomes due and payable. “Due and payable” is considered to be when there is a right to claim payment of the interest.

Is Withholding Tax on Interest (WTI) due on death benefits which may have incurred interest due to late payments?
Yes.