Do I pay tax on interest in RSA when living and working abroad?

By Marc Sevitz · Updated

I am a South African but I have been living and working in Thailand for almost 4 years, and thus pay no tax in SA. I only visit SA for about 20 days a year.

I recently married an Australian and we want to open a fixed-deposit account in SA to make use of favourable interest rates.

If we both continue to live and work in Thailand, do we need to pay tax on the interest earned on that account? It will be about R100 000 per year.



TaxTim Marc

TaxTim Marc said:
15 June 2014 at 21:34

All income earned in South Africa is taxed due to it being sourced within South Africa. Your wife will not pay any tax on her interest as she will be exempt as she is a non-tax resident. It is best to open the account in her name and have her deposit the money.