Interest and Dividend Exemptions

Figures current at 29 September 2026. Source: TradeAnswers.

The exemptions
Item2026/272025/26Applies to
Interest exemption, under 65R23,800R23,800South African source interest
Interest exemption, 65 and overR34,500R34,500South African source interest
South African dividendsFully exempt from income taxSame20% dividends tax withheld instead
Foreign dividendsPartial, formula basedSameEffective maximum rate of 20%
Tax-free savings accountAll of the above exemptSameWithin the contribution limits
What the interest exemption is worth
Marginal rateExemption under 65Tax savedExemption 65 and overTax saved
18%R23,800R4,284R34,500R6,210
26%R23,800R6,188R34,500R8,970
31%R23,800R7,378R34,500R10,695
36%R23,800R8,568R34,500R12,420
41%R23,800R9,758R34,500R14,145
45%R23,800R10,710R34,500R15,525
Withholding on payments to non-residents
PaymentRate
Dividends20%
Interest15%
Royalties15%
Visiting entertainers and sports people15%
Sale of South African property, natural person7.5%
Sale of South African property, company10%
Sale of South African property, trust15%

Data maintained by TradeAnswers · updated as the figures change