The tax threshold is R 67111.00. My sole income is R 67110.00 from interest on cash in the bank, one rand less than the tax threshold. I am under the tax threshold, but the income is not active (from work), it is passive(from interest), do I still have to pay tax ?
There is a confusing/conflicting tax break of R 23800.00 for income earned as interest ?? R 23800.00 still falls under the total tax threshold of R 67111.00 Can you elaborate please.
The first test on whether tax needs to be paid is R67 111, if you earn less than that amount, regardless of the source of the income then you will not have to pay tax. If you earn more than that solely from interest then in fact the first R67 111 and a further R23 800 would be tax free.
CaptainNemosays: 1 March 2013 at 13:34
Many thanks. Clear and concise answer. Much appreciated!
TaxTimsays: 1 March 2013 at 14:33
Only a pleasure!
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