tax query on interest non taxpayer

mike.tovey

hello all ,does a non tax payer pay tax on interest on savings if on a joint account atb mike.tovey

debbie42

Theoretically, a joint account is considered 50:50, so if one of you doesn't pay tax, and supplies an R85 form to the bank, then they should tax half on one person's tax-paying status and none on the other. I have read that some banks won't accept this, in practice, maybe because of the admin?

Mikeyorks

Depends.

If it's joint the interest is paid 50:50. All of it will be taxed at 20% unless the non-taxpayer has filed an R85 to obtain gross interest.

But - some Institutions won't allow interest to be paid both gross and net within the same account (mainly because their software won't cope). In such cases the non-taxpayer has to suffer the deduction and claim it back after the year end.

(Sorry Debbie - you weren't there when I stepped in !!)