FAQ Blog Calculators Students Logbook Contact
Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Interest on family loans

Posted 19 November 2015

Dave said:
19 November 2015 at 9:36

If I loan my child R150 000 and charge her 7,5% interest, would that be considered fair interest by SARS ( I will also donate R 100 000 to her in that same tax year), and the interest I earn (from the loan) would that fall into the R 23 800 interest exemption, and not actually be taxable?

TaxTim Marc TaxTim Marc said:
19 November 2015 at 11:06

Yes to all your questions, the interest rate is fair and you will be able to have an exempt portion of the interest earned.

This entry was posted in Tax Q&A and tagged , , . Bookmark the permalink.





Submit your tax return right here!
Get started

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund
Answer simple questions about your incomes and expenses. TaxTim does the rest. Just click click, submit.

Make tax easy

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.