If I retire before the age of 65, using only investment income from interest earned on funds saved in the bank, would I still pay tax at the existing marginal rates? Or, would I qualify for a lower tax rate?
Under the age of 65 entitles you to a R23 800 investment income exemption on interest before you use the tax threshold which for 2014 is R70 700 per annum. So basically you will have R94 500 tax free income before you start paying tax if it is only interest.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.