SARS (South African Revenue Service) applies tax on interest income according to a specific tax bracket system. The tax rate on interest income depends on your total taxable income and is subject to progressive tax rates.
In South Africa, interest income is generally included in your annual taxable income and is subject to income tax. The current individual income tax rates for the 2021/2022 tax year are as follows:
- 0% on the first ZAR 87,300 of taxable income.
- 18% on taxable income between ZAR 87,301 and ZAR 195,850.
- 26% on taxable income between ZAR 195,851 and ZAR 305,850.
- 31% on taxable income between ZAR 305,851 and ZAR 423,300.
- 36% on taxable income between ZAR 423,301 and ZAR 555,600.
- 39% on taxable income between ZAR 555,601 and ZAR 708,310.
- 41% on taxable income above ZAR 708,310.
These rates are subject to change, and it’s important to consult the latest tax regulations or a tax professional for the most up-to-date information, as tax laws can be revised over time.
The current Interest paid is taxed at a final withholding tax rate of 15%.
How much tax do you pay on interest in South Africa?
How is SARS interest calculated?
How much interest rate is taxable?
Is SARS interest tax deductible?
How do you calculate interest income?
How is tax calculated in South Africa?
What income is exempt from tax in South Africa?
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