Blog Q&A Calculators Students Logbook Contact
Earn under R350,000?Click here to see why you still need to file to get your Tax Refund.

Am I liable for tax on the repayment of a loan account and how do I reflect this in my tax return?

Posted 1 July 2014 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
I invested (in the form of a loan account) in a start up private company as a shareholder at the end of 2004. I have been receiving monthly income from the company since mid 2013 as repayment of the original loan account plus annual interest. How do I account for these repayments in my tax return and am I liable for tax on these repayments of the loan account?

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.

TaxTim TaxTim says:
1 July 2014 at 18:23

You will only be liable on the interest received, not the capital repayment of the loan. You would include this under local interest in the ITR12 Income Tax Return.


Get SARS Tax Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!


TaxTim will help you:

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started