Tax thresholds and married in community of property

Paul says:
27 January 2016 at 11:53

I am a provisional tax payer 66 yrs of age & married in community of property my income is derived from an annuity & interest from fixed deposits, what is the maximum I can earn before I pay tax.

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TaxTim TaxTim says:
27 January 2016 at 17:12

You can earn taxable income up to R114,500 which will be tax free. In addition, there is a R34,500 interest exemption therefore only interest above this amount, will count towards the R114,500 threshold.

Paul says:
27 January 2016 at 21:39

Hi, just to clarify, interest amount over the R114,500 is divided in two, if married in community of property? so on an income of R190,000 - R114,500 = R75,500 divided by 2 = R37,750 - R34.500 = R3,250, so will be taxed on R3,250 is this correct.

TaxTim TaxTim says:
28 January 2016 at 15:37

Please clarify - what is your total income and how much of it is interest?

Paul says:
28 January 2016 at 15:41

R170,000, R60,000 annuity, R110,000 fixed deposit interest.

TaxTim TaxTim says:
28 January 2016 at 22:25

Therefore R55 000 would be fixed deposit less the R34 500 so R20 500 plus the annuity of R60 000 means you fall beneath the tax bracket and won't pay tax.

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