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.
CLOSE
Don't Overpay Tax in 2017

  Make Tax Returns Quick & Easy.
  First time users SAVE 15%!

Click here

Members loan

Posted 1 June 2016 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

Get started

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!

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
BusinessTax says:
31 May 2016 at 12:35

I have a member loan account of approx R1m rand. I wish to reduce this by R100k by transferring this money to my personal bank account. The members loan account is interest free. What are the tax implications for my company and my personal tax? and how should I declare it on my tax returns.

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

TaxTim TaxTim says:
1 June 2016 at 10:01

There would be no tax effect if you reducing the members loan and paying it back to yourself. You would just need to declare the members loan balance in the assets and liabilities section of your personal tax return and also on the balance sheet of your company.

However, It would be tax efficient to record a market related interest on the loan. Then you can claim the tax deduction in your company and record the interest income in your personal tax return (the first R23,800 of interest per year for an individual is tax exempt).


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

Get started

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!