Tax on Fixed Deposit Interest under R23 800

[ViperODN]

I am still a student, so no job or income except that of maintenance.

But I inhereted some money and put it in a Fixed Deposit last year. I recently got a Income Tax certificate in the mail from my bank which said I have received taxable income of 11 000.

As it is below 23 800, I do not need to pay anything right? But I need to register as a taxpayer and declare it?

I do not even have a tax reference number. So just wondering if I need to register and then declare the interest to SARS?

 

[silkenphoenixx]

This isn't licensed tax advice but you can probably get away with just not doing anything. The income is "taxable" in the sense that you'd ordinarily have to declare it, and SARS will tax you on amounts that you receive over and above the threshold which you mentioned. If you receive interest from other accounts / investments for example then you'd have to pay taxes at your nominal income tax rate, which if you earn no other income is zero up to 75k or so per year.
If you are self-employed or do get income here and there you'd normally need to register as a "provisional" taxpayer though I'm not 100% sure how that works.

Safest approach legally: consult a tax accountant.

But I think you should be fine.

 

[HavocXphere]

Here you go:

http://www.sars.gov.za/TaxTypes/PIT/Pages/Do-you-need-to-submit-a-return.aspx

 

[ViperODN]

Here you go:

http://www.sars.gov.za/TaxTypes/PIT/Pages/Do-you-need-to-submit-a-return.aspx

Thanks. The way I interpret this is that I accrued interest less than 23 800, thus I do not need to submit a return nor register as a taxpayer?

 

[EnT@nGleD]

Thanks. The way I interpret this is that I accrued interest less than 23 800, thus I do not need to submit a return nor register as a taxpayer?

That interpretation is correct

 

[Tomtomtom]

No tax payable - enjoy it while it lasts!

Just note that the R 23 800 interest exemption is "deprecated" and is not going to be adjusted for inflation in future. The policy replacement is the Tax-Free Savings Account system. If you start transferring to a TFSA over the next few years you can ensure the return on that inheritance is never taxed.

 

[ViperODN]

No tax payable - enjoy it while it lasts!

Just note that the R 23 800 interest exemption is "deprecated" and is not going to be adjusted for inflation in future. The policy replacement is the Tax-Free Savings Account system. If you start transferring to a TFSA over the next few years you can ensure the return on that inheritance is never taxed.

But do I have to register as a taxpayer though? The way I understand is that I am earning below the threshold so no need to register?

I have actually been considering that, just haven't gotten around to going to the bank. Thanks for the advice!

 

[Tomtomtom]

But do I have to register as a taxpayer though?

No need to register. Don't worry about SARS until your total income goes above the ~75k threshold, i.e. ~R 6000 pm.

 

[backstreetboy]

Why so paranoid? Doing something dodgy, aren't you?

 

[diapason]

Thanks. The way I interpret this is that I accrued interest less than 23 800, thus I do not need to submit a return nor register as a taxpayer?

You will eventually be registered by your first employer, even if you earn a tiny amount for just one hour. At that point SARS may well ask you to account for any sort of earnings, eg interest, you have had prior to registration, so keep any tax certificates you receive until then.