If I opened a 5 year Fixed Deposit account with Standard Bank taking the payout at maturity, how would the tax certificate(s) be issued?
i.e. will I recieve:
a) a tax certificate each year ( 5 in total ) reflecting the interest accumulated for that particular year? ( Im not actually sure if there will be interest accumulated each year in the first place )
b) a single tax certificate when I recieve the payout at maturity reflecting the entire interest amount that was paid?
Reason I ask is to ascertain the tax implications of taking the payout at maturity if the interest when paid out is above the interest threshold of R23800.
So take for example, if I took a Fixed Deposit of R75,000.00 over 5 years with payout at maturity at the 9.35% advertised on the website, I assume I would recieve R35062.50 in interest when matured ( plus the initial R50000.00 ).
If I recieve a tax certificate each year showing the R7012.50 interest for that specific year, this isn't a problem as its within the yearly exemption; however if I recieve a tax certificate for only the year I recieve the payment in, I assume this will show an interest amount of R35062.50 and that would then require me to pay tax on R11262.50.
To clarify, I'm looking to find out how tax certificates are issued for fixed deposits that are taken over multiple years with payout at maturity.