Interest and Dividend Exemption

The current annual interest exemption will increase to R23 800 for taxpayers under the age of 65 and to R34 500 for taxpayers aged 65 years and older.

As from 1 March 2012 the foreign interest and dividend exemption fell away.

Most Dividends received by individuals from foreign entities are taxable.  Interest is exempt where earned by non-residents who are physically absent from SA for 183 days or more per annum and who are not carrying on business in SA.

Comment:
This interest exemption encourages a culture of savings and assists retired South Africans who invest in fixed- interest investments. 

Exemptions - Individuals :

  • Unemployment insurance benefits
  • Road Accident Fund payouts as from 1 March 2012
…individuals will again benefit from personal income tax relief that eliminates the effect of inflation on income tax liabilities.