Interest Exemption Under 65 vs 65+ — R23,800 and R34,500

The two numbers

For the current individual tables used on Taxzi: the first R23,800 of South African-source interest is exempt if you are under 65. From age 65 it is R34,500. Interest above that slice is taxable at your marginal rate. These are exemptions, not rebates.

When you turn 65

The higher slice applies if you were 65 or older on the last day of the year of assessment. Turning 65 in March still gives the higher amount for that year. Do not pro-rate the exemption by birthday month.

What counts as this interest

Bank and similar South African-source interest on the IT3(b). “Interest boost” labels are still interest. TFSA interest is already exempt under section 12T and does not eat the 10(1)(i) slice. Foreign interest is a different line. Crypto-style yield is not this exemption just because an app said “interest.”

Declare the total

SARS often pre-populates IT3(b). Hide a R400 credit and you hand them a mismatch. Taxzi lists interest-looking lines. You confirm the certificate. Figures: sars.gov.za.

Questions

I turn 65 in January. Which exemption?

If 65 on the last day of that year of assessment, use R34,500.

Does each bank get its own R23,800?

No. One exemption on your total local interest.