Interest and Dividends

Interest Exemptions

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

23 February 2022 – No changes from last year

2023​2022​​2021​2020​​20192018​​2017​2016​​2015
​Person younger than 65R23 800​​R23 800​​R23 800​R23 800​​R23 800​R23 800​R23 800​R23 800​R23 800
​Person 65 and olderR34 500​R34 500​R34 500​R34 500​​R34 500​R34 500​R34 500​R34 500​R34 500

Withholding Tax on Interest

23 February 2022 – 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 (2021) (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 

23 February 2022 – 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

23 February 2022 – 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% via the normal tax system (not dividends tax). No deductions are allowed for expenditure incurred to produce foreign dividends.

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