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Nadine said: 25 January 2024 at 9:19 I think my tax return for 2023 was incorrect. The amount in my ABSA back account pulled through and according to me, I am not supposed to pay tax on interest earned on money in my savings bank account. If I am correct, what are the next steps to correct this? |
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TaxTim Alicia said: 25 January 2024 at 9:50 Your standard savings account at ABSA and other local investments are all taxable if the total interest you earned for the year is more than R 23 800 (R 34 500 if you are older than 65). There are however, some investments that won't trigger a tax liability, which are called tax-free savings accounts. The tax-free investments may only be provided by licensed banks, long-term insurers, managers of registered collective schemes (with certain exceptions), the National Government, mutual banks or co-operative banks, the South African Postbank, administrative financial services providers and persons authorised by a licensed exchange to perform one or more securities services in terms of the exchange rules. You are only able to invest R 36 000 into a tax-free savings account each year. Please click here for further information on tax-free savings accounts. |
