What is Non-Taxable or Exempt Income?

“Non-Taxable Income” is term that is most commonly used, but the more correct term is “Exempt Income”. This is income which you receive which you are allowed to exclude from your Gross income and in so doing you do not get taxed on it. Examples include:

  • Dividends received from a South African source
  • South African interest received by non-resident
  • Foreign pensions
  • Workmen’s compensation benefits
  • Unemployment (UIF) benefits
  • Alimony and Maintenance benefits
  • Uniform Allowance – provided that the uniform as a condition of employment and clearly distinguishable
  • Bona fide scholarships or bursaries granted to assist someone to study at a recognized institution
  • Levies received by Body Corporates, club fees by Recreational clubs,
  • In addition to this list, some exemptions are partially taxable – terms and conditions apply:
  • Ship crews and employment outside SA – when the time spent abroad exceeds and accumulative 183 days and 60 days of which are spent away consecutively + +
  • All income must however, be declared to the South African Revenue Services.

This serves as a guide line only so please feel free to ask for more information from our team of professional accountants.