My friend lives in Namibia - she recently moved there about 2 years ago. She earns income there and pays medical aid and pension contributions there. She still has a bank account in South Africa together with investments so she is earning interest yearly. Would she still have to submit a tax return? The interest she has earned showing on her IT3b from the bank is just under R900. Would appreciate your help with this? Thank you
If that is her only income in South Africa, there is no need to submit a tax return as it is below the tax threshold.
Collysays: 25 November 2015 at 12:27
Thanks Tim for your reply, that certainly does help her. Can I just check with you that the tax threshold is based on the interest earned for the year (Which I now know is R23800), not the actual balance sitting in the account? She filed her last tax return for 2014 because she thought she had to so would they penalise her this year if she doesn't? I always thought once you started filing tax returns you had to carry on despite your income earned.
TaxTimsays: 26 November 2015 at 7:35
Yes, the interest is taxable not the capital balance. It is always best to submit a tax return just to make sure you are fully up to date, so in that sense Yes submit, but in terms of paying tax there won't be any adverse consequences.
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