The investments that are made in the country can be taxed in different ways.
1) Short-Term Investments: These are investments that are made for a period of fewer than 12 months.
2) Long-Term Investments: These are investments that are made for a period of more than 12 months.
3) Foreign Investments: These are investments that have been made outside the country or have been brought into the country by an individual or company.
4) Corporate Investments: These are investments which have been made by a company and not by an individual investor.
How is interest income taxed in South Africa?
Interest income is taxable in South Africa. The rate of tax, which is currently 28%, is applied to the gross interest. Interest is deductible in South Africa if it is deemed to be ‘an allowable interest’.
What is the capital gains tax rate in South Africa?
The capital gains tax rate in South Africa depends on the type of asset that was sold. For assets that are held for less than one year, the capital gains tax rate is 34%. For assets that are held for more than one year, the capital gains tax rate is 18%.
What are the tax implications of investing in South African retail savings?
An individual who invests in retail savings in South Africa will have to pay a capital gains tax on the investment. The investor can claim the amount of the capital gains as a deduction from his taxable income. The investor will also be subject to a withholding tax at source when he sells the shares and pays an income tax on any dividends that he receives.
