Tax guide

Section 10(1)(i) local interest exemption

South African-source interest from a bank or similar is income, then partly exempt. The exemption is not optional and it is not CGT.

The amounts

Under 65: R23,800 for the year of assessment. 65 and older: R34,500. These are the published individual exemptions used on current SARS rate pages. Foreign interest is a different rule set.

What counts

Interest earned, interest boosts, and interest cashback on a South African bank account. The word “interest” on a statement wins even if software tagged the line as an investment disposal.

IT3(b)

Banks issue IT3(b) certificates. SARS often pre-populates them. Check the total against your statements. A TFSA’s interest is already exempt under section 12T and does not use this exemption.

Over the exemption

Interest above the exempt slice is taxable at your marginal rate. It can also help push you into provisional-tax territory if you have little PAYE income.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

Find the interest income in your bank statements

Upload bank statements. Taxzi flags lines that may qualify under SARS rules. Mixed shops stay out until you say what they were. You confirm every claim. This is guidance — not a filed return.

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