Results 1 to 5 of 5

Thread: Interest received, non-taxable supply or zero rated?

  1. #1
    New Member
    Join Date
    Sep 2012
    Location
    Gauteng
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Interest received, non-taxable supply or zero rated?

    Can anyone help me, I am not sure if interest received is non-taxable supply or zero rated?

  2. #2
    Silver Member
    Join Date
    Jan 2012
    Location
    Johannesburg
    Posts
    305
    Thanks
    112
    Thanked 53 Times in 40 Posts
    Not sure how to do it as an accountant but in basic terms you have to declare any tax earned, there is an exclusion of R22 800 which you don't pay tax on, the rest gets added to your income and you pay tax accordingly
    ---There is no traffic at the extra mile---

  3. #3
    Platinum Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Durban
    Posts
    2,240
    Thanks
    207
    Thanked 310 Times in 268 Posts
    Hi Tanja - I presume that we are talking VAT here.

    I have always been told that there is no VAT payable on interest paid or received.

    As to it being Zero-rated, there are a number of specified items listed in the Pastel tax guide - but interest is not one of them:

    The following are, amongst others, specifically zero rated:
    brown bread, maize meal, samp, mealie rice, dried maize, dried
    beans, lentils, pilchards (excluding pet food or sardines supplied in tins),
    milk powder (unflavoured), dairy powder blend, rice, fresh vegetables
    (excluding canned, bottled and dehydrated), fresh fruit, vegetable oil used
    for cooking (excluding olive oil), milk including long-life milk (excluding
    condensed, flavoured, sweetened and evaporated milk), cultured milk,
    brown wheaten flour, raw eggs, pod vegetables, diesel, petrol and
    illuminating paraffin. Export sales and services are zero-rated, subject to
    specific requirements. Supplies from South Africa to an Industrial
    Development Zone will be treated as exports
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  4. #4
    Gold Member Mark Atkinson's Avatar
    Join Date
    Jul 2010
    Location
    Durban, South Africa
    Posts
    796
    Thanks
    212
    Thanked 150 Times in 117 Posts
    Blog Entries
    12
    Interest is a financial service and therefore exempt from VAT.

    Income tax - yes. VAT - no.
    "The way to gain a good reputation, is to endeavor to be what you desire to appear." - Socrates
    Mark My Words - Arbitrary thoughts on ordinary things

    LinkedIn | Twitter

    Bafokke Shirts - South Africa's No. 1 Fan Shirt!

  5. #5
    New Member
    Join Date
    Oct 2012
    Location
    Bellville
    Posts
    3
    Thanks
    0
    Thanked 1 Time in 1 Post
    Yes interest is an Exempt Supply. Exempt Supplies include the following: financial services (interest, life insurance, medical schemes, provident pension and retirement annuity funds)
    etc.

  6. Thanks given for this post:

    Miro Bagrov (26-Oct-12)

Similar Threads

  1. EMP201 not received
    By Paterkie in forum Tax Forum
    Replies: 1
    Last Post: 05-Aug-12, 08:10 PM
  2. [Question] Are funds from abroad taxable?
    By cybersangoma in forum General Business Forum
    Replies: 5
    Last Post: 04-Apr-12, 01:11 PM
  3. Interest received on VAT 201
    By J7J in forum Tax Forum
    Replies: 0
    Last Post: 15-Nov-11, 10:40 PM
  4. How do you record discount received?
    By Pap_sak in forum Business Finance Forum
    Replies: 1
    Last Post: 12-Mar-09, 06:11 PM
  5. Use of interest-free loans taxable - SCA ruling
    By Eugene in forum General Business Forum
    Replies: 0
    Last Post: 14-Sep-07, 02:28 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •