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Withholding tax in South Africa 2026
For residents, withholding mostly means salary deductions under pay-as-you-earn (PAYE) plus the 20% dividends tax.
Non-residents face final withholding: 20% on dividends, 15% on interest, 15% on royalties and 15% on entertainer and sports earnings.
Bank interest paid to non-residents is exempt from the 15% interest withholding.
Spend more than 183 days in the country or run a local branch and the interest and royalty withholdings switch off — normal net-basis tax applies instead.
At a glance
- top rate
- 20% (dividends)
- entry band
- 15% on interest and royalties to non-residents
- tax year basis
- 2026/27 year of assessment, 1 March 2026 to 28 February 2027
- filing deadline
- Withheld at source; no return needed if withholding-only income
- residency basis
- Final withholding applies to non-residents; residents settle through assessment
- regime flag
- Treaty relief widely available on declaration to the payer
Rates
Withholding on payments to non-residents 2026/27
| Payment | Rate |
|---|---|
| Dividends | 20% |
| Interest | 15% (bank interest exempt) |
| Royalties and know-how fees | 15% |
| Entertainers and sportspersons | 15% final tax on gross fees |
Marginal rates apply within each band.
Thresholds & allowances
- Bank interest exemption0% withholding
Interest from local banks to non-residents escapes the 15% charge.
- 183-day performer exclusionNo 15% entertainer tax
Non-resident employees of a resident employer who spend more than 183 days in the country fall outside the entertainer withholding.
Residency
Residency trigger
Withholding at source is the final tax for most non-residents, so no return is needed when that is the only local income. Reporting applies if treaty relief on dividends is claimed.
Non-resident treatment
With a local branch or more than 183 days of presence in the year, interest and royalties are instead taxed on a net basis under the ordinary rules.
Notes
- Residents receiving local investment income are generally paid gross (apart from the 20% dividends tax) and settle tax through the assessment cycle.
- The 15% on entertainers and sportspersons covers performances, matches and similar appearances; the local organiser must notify the revenue service within 14 days of signing the deal.
- Emigrants can defer the withdrawal tax on retirement funds by leaving the money invested until retirement or death; cashing out earlier triggers it.
- Salary paid by a local employer for work physically performed abroad is not locally taxable for non-residents — source follows where the work happens.
FAQ
I live abroad with money in a local savings account — what is withheld?
Nothing on bank interest: it is exempt from the 15% interest withholding. Dividends from local shares still lose 20% unless a treaty cuts the rate.
As a non-resident shareholder, can I get the 20% reduced?
Often yes — many treaties bring dividends down to 5%, 10% or 15%. File the declaration and undertaking with the paying company before the dividend is paid.
Figures: tax year 2026/27 (March–February), compiled from public sources. Not tax advice.