I am receiving R 800 000 from my uncle, as part of an inheritance. Will I have to pay tax on this. I would like to invest it where I will receive a monthly interest that I can use, will I be taxed on this monthly amount. If so how much?
The inheritance would be exempt - if you do submit a Tax Return, you would include it on your ITR12 Tax Return under the section, "amounts not considered taxable".
Interest is taxable - however, there is an annual exemption of R23,800 for persons under 65 years.
Do you earn other income?
Sashasays: 2 September 2015 at 14:24
Yes I do, have a full time job. The interest will exceed the annual exemption amount.
Can you advise the tax rate charge on the interest earned thereafter?
TaxTimsays: 2 September 2015 at 22:26
The interest (less the exempt portion) will be added to your normal salary and will be taxed at your marginal tax rate per the PAYE tax tables for individuals. You can make use of our Income tax calculator to find out how much tax you will pay on your salary and interest.
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