Interest exemption limitations: When does it apply from?
Dear MoneywebTax
Here are the details of my investments, on which I need some clarity:
1 I have a cheque account on which I receive monthly interest
2 I also have a RSA government bond investment fixed for two years with interest paid in March and September annually.
3 I have a brokerage account with a stockbroking company, but have to date not traded as yet, and receive monthly interest on this trading account.
I am a provisional tax payer and need to do my calculations now of income for 2009_2010 but am not sure if the interest on these investments are now tax exempt. I do know of the annual exemption given to tax payers of R21 000 for 2009_2010, but this story in the Citizen now confuses me as I also hear of new tax amendments coming into effect, and when, I really need to know.
Answer from Colin Wolfsohn, a member of the Saica National Tax Committee:
The PROPOSED changes to interest exemptions are not yet law
The reader must calculate the estimated taxable income in the same way as he did in the past taking into account all sources of interest
He/you will note that the 1st 2011 provisional tax forms now take the last assessed taxable income and increase this by 8% per year to calculate the "basic amount"
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Comments
Please comment if property loan stock interest payments will still qualify for
the R22,300 interest excemption. When will we have clarity on the proposed changes?
by Henren on July 26 2010, 10:30
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