{"id":4600,"date":"2017-02-21T10:56:51","date_gmt":"2017-02-21T08:56:51","guid":{"rendered":"https:\/\/stbb.co.za\/dev2\/?p=4600"},"modified":"2019-11-27T11:02:31","modified_gmt":"2019-11-27T09:02:31","slug":"thought-of-the-week-trusts-tax-implications-of-interest-free-loans","status":"publish","type":"post","link":"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\/","title":{"rendered":"Thought of the Week | Trusts \u2013 Tax Implications of Interest Free Loans"},"content":{"rendered":"

From 1 March 2017 new and existing interest free, or low interest loans made to trusts by a natural person or a company with a connected person relationship, will be subject to the tax implications of Section 7C.<\/p>\n

Effectively, the interest concession, being the difference between the actual rate of interest levied on the loan and the official rate of interest (currently 8% p.a.), will be deemed to be a donation in hands of the lender and subject to donations tax of 20%. Some relief may however be available through the application of the annual donations tax exemption of R100,000.<\/p>\n

Please follow this link<\/span><\/a> for more information on this topic and the exclusions that apply.
\nTo ensure effective tax planning we urge you to contact us to arrange a consultation.<\/p>\n

Contact STBB | Smith Tabata Buchanan Boyes on STBB<\/span><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

From 1 March 2017 new and existing interest free, or low interest loans made to trusts by a natural person or a company with a connected person relationship, will be subject to the tax implications of Section 7C. Effectively, the<\/p>\n","protected":false},"author":53,"featured_media":937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[110],"tags":[],"class_list":["post-4600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-of-the-week"],"acf":[],"yoast_head":"\nThought of the Week | Trusts \u2013 Tax Implications of Interest Free Loans - STBB<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/stbb.co.za\/dev2\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Johan Greyling\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/\"},\"author\":{\"name\":\"Johan Greyling\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/person\\\/1c62d874758d10e45e2abab5308dac2f\"},\"headline\":\"Thought of the Week | Trusts \u2013 Tax Implications of Interest Free Loans\",\"datePublished\":\"2017-02-21T08:56:51+00:00\",\"dateModified\":\"2019-11-27T09:02:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/\"},\"wordCount\":146,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2019\\\/06\\\/rawpixel-592444-unsplash-1.jpg\",\"articleSection\":[\"Thought Of The Week\"],\"inLanguage\":\"en-ZA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/\",\"url\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/thought-of-the-week-trusts-tax-implications-of-interest-free-loans\\\/\",\"name\":\"Thought of the Week | Trusts \u2013 Tax Implications of Interest Free Loans - 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