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Declaration of interest on fixed deposits for provisional taxpayers?

Posted 23 June 2015 under Tax Questions



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Johnw says:
11 June 2015 at 13:11

I read your earlier reply to a question on income tax on fixed deposits. However, I am a provisional tax payer and my question is, when do I declare the interest earned on a 12 month F D when the inception and maturity dates do not coincide with the tax year?

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TaxTimTaxTim says:
11 June 2015 at 17:35

You will receive a an IT3b from the bank regardless of the different dates and it will show the interest earned/accrued for the tax year. You will use that amount for your tax return.


Johnw says:
12 June 2015 at 12:16

Thank you very much. Just to clarify, my FD incepted 27th August 2014 and will mature 27th August 2015 Interest payable at maturity. In completing my Tax Return for the 2015 tax year due in July 2015 do I include the interest accrued but not paid from 27thAugust 2014 to 28th February 2015 or do I declare all of the interest after it has matured and been paid i.e. in my Provisional tax returns for the 1st or 2nd periods of the 2016 tax year ? I have not received any IT3b from the bank as yet.

Many thanks for your help


TaxTimTaxTim says:
12 June 2015 at 15:08

You need to include the interest accrued to you from 27th August - 28th February, the bank must give you an IT3b with the exact figures in case SARS request you to explain where the number came from.


Johnw says:
18 June 2015 at 10:04

I have asked the bank to supply an IT3B but in response they say no interest was paid during that period so that they can not issue such. They have issued me with an "Interest Certificate" for the period which shows the interest as "nil" .What now?

P.S. I have asked them to confirm the amount of interest earned but not paid during the period which I could include in my tax return. However, that would present another problem in that when the FD does mature they will, for that tax year, declare all of the interest paid since inception. ?


Johnw says:
18 June 2015 at 10:05

I have asked the bank to supply an IT3B but in response they say no interest was paid during that period so that they can not issue such. They have issued me with an "Interest Certificate" for the period which shows the interest as "nil" .What now?

P.S. I have asked them to confirm the amount of interest earned but not paid during the period which I could include in my tax return. However, that would present another problem in that when the FD does mature they will, for that tax year, declare all of the interest paid since inception. ?


Johnw says:
18 June 2015 at 10:05

I have asked the bank to supply an IT3B but in response they say no interest was paid during that period so that they can not issue such. They have issued me with an "Interest Certificate" for the period which shows the interest as "nil" .What now?

P.S. I have asked them to confirm the amount of interest earned but not paid during the period which I could include in my tax return. However, that would present another problem in that when the FD does mature they will, for that tax year, declare all of the interest paid since inception. ?


Johnw says:
18 June 2015 at 10:05

I have asked the bank to supply an IT3B but in response they say no interest was paid during that period so that they can not issue such. They have issued me with an "Interest Certificate" for the period which shows the interest as "nil" .What now?

P.S. I have asked them to confirm the amount of interest earned but not paid during the period which I could include in my tax return. However, that would present another problem in that when the FD does mature they will, for that tax year, declare all of the interest paid since inception. ?


Johnw says:
18 June 2015 at 10:05

I have asked the bank to supply an IT3B but in response they say no interest was paid during that period so that they can not issue such. They have issued me with an "Interest Certificate" for the period which shows the interest as "nil" .What now?

P.S. I have asked them to confirm the amount of interest earned but not paid during the period which I could include in my tax return. However, that would present another problem in that when the FD does mature they will, for that tax year, declare all of the interest paid since inception. ?


TaxTimTaxTim says:
19 June 2015 at 7:54

It is not the correct way this should be reflected, however you can use this nil certificate and if SARS requests proof then you show it to them. The interest when paid will then be reflected int he next year's return. This is not ideal, but would depend on the bank.


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