By Chris Herbst, Chartered Business Accountant in Practice (CBAP) with CIBA, General Tax Practitioner (GTP) with SAIT, Stellenbosch University. Team registered with SAIT, SAIPA and CIBA.
Most people meet the IT3(b) when their bank emails a tax certificate in the middle of the year, or when an ITR12 opens on eFiling with interest already filled in. This guide explains what the certificate is, who has to issue it, which source codes it carries, how the interest exemption works against it, how to view it yourself on eFiling, and what to do when the amount is missing or wrong. If your question is specifically about crypto platforms, read our separate post on why crypto platforms do not supply IT3(b) and IT3(c) forms.
What Is an IT3(b) Certificate?
An IT3(b) is the third-party return a payer of investment income submits to SARS for each account holder, and the certificate you receive is your copy of it. SARS lists the form as the IT3(b) Certificate of Income: Investments, Property Rights and Royalties. It reports income you earned, not tax you paid, which is why it looks different from an IRP5.
What does the "b" in IT3(b) mean?
The letter only separates the certificate types in SARS's IT3 family. The SARS Business Requirements Specification for IT3 Data Submission (version 4.0.0D-10) covers IT3(b), IT3(c), IT3(d), IT3(e) and IT3(s) in one document. IT3(b) is investment income, IT3(c) is gains and losses on financial instruments, and IT3(s) is tax free investments.
Is an IT3(b) the same as an IRP5?
No. An IRP5 is issued by an employer for remuneration and the PAYE withheld from it. An IT3(b) is issued by a bank, fund or other payer for investment income. The IT3(b) shows the income, and the tax on it is worked out on your assessment.
Why does SARS want this data?
SARS uses third-party data to prefill returns and to run auto-assessments. The SARS third-party data page states that these submissions are critical to support tax compliance and enable SARS to pre-populate and automatically assess tax returns.
Who Has to Issue an IT3(b)?
Banks, financial institutions and certain agents and attorneys who pay or receive investment income for someone else must submit IT3(b) data. The duty comes from section 26 of the Tax Administration Act, and the list of who must report is set out in Government Notice 260 in Government Gazette 36346 of 5 April 2013.
Which institutions are on the list?
The notice names banks under the Banks Act and the Mutual Banks Act, co-operative banks, the South African Postbank, financial institutions regulated by the financial services regulator, estate agents who pay or receive amounts for investment, interest or rental on behalf of others, and attorneys who do the same. Each must submit an IT3(b) for amounts paid or received for any investment, rental of immovable property, interest or royalty, and for transactions on accounts it keeps for another person.
Does a private person who lends money issue an IT3(b)?
Not under that notice, which names institutions and practitioners rather than individuals. Interest you earn on a private loan is still income, and you add it to the local interest section of your ITR12 yourself.
Do crypto exchanges issue an IT3(b)?
Crypto platforms are not on the list in Government Notice 260, so you do not receive an IT3(b) for crypto gains or rewards. You declare crypto income and gains on your ITR12 from your own records.
Which Income Does an IT3(b) Show?
An IT3(b) shows interest, foreign dividends, rental collected by an agent, royalties and, for transactional accounts, monthly debits and credits. Section 4.2.1 of the IT3 BRS lists the items an IT3(b) carries.
What interest is included?
The BRS lists interest due or accrued to the account holder at the end of the reporting period, including interest on funds invested, on current and savings accounts, on debentures, on loans and mortgage bonds other than those owed to banks, and on loans to a business. Profit on the redemption of bearer instruments is reported too.
Does the IT3(b) show local dividends?
Ordinary local dividends are reported to SARS through the separate Dividends Tax submission, not the IT3(b). The SARS interest and dividends rates page states that dividends from South African companies are generally exempt from income tax for individuals, with dividends tax of 20% withheld by the payer. REIT distributions and taxable local dividends are the exception and carry their own IT3(b) code.
Which source codes appear on an IT3(b)?
Appendix B of the IT3 BRS sets out the IT3(b) source codes. The same codes are used on the ITR12, so the number on your certificate tells you where the amount lands on the return. The table below uses the BRS descriptions and the sections named in the Comprehensive Guide to the ITR12 Income Tax Return for Individuals (IT-AE-36-G05, revision 40).
- 4201: What it shows: Local interest; ITR12 section: Local interest
- 4218: What it shows: Foreign interest; ITR12 section: Foreign interest
- 4113: What it shows: Foreign tax on interest; ITR12 section: Foreign interest
- 4216: What it shows: Taxable foreign dividends; ITR12 section: Foreign dividends
- 4112: What it shows: Foreign tax on dividends; ITR12 section: Foreign dividends
- 4238: What it shows: REIT and taxable local dividends; ITR12 section: REIT distributions
- 4292: What it shows: Section 8E and 8EA dividends; ITR12 section: Investment income
- 4210: What it shows: Rental income; ITR12 section: Local rental
- 4212: What it shows: Royalty income; ITR12 section: Other income
- 4237: What it shows: Interest paid by SARS; ITR12 section: SARS interest
For the foreign codes in detail, see our guide to SARS codes 4216 and 4218 for foreign dividends and interest.
When Is IT3(b) Data Sent to SARS?
Institutions submit IT3(b) data twice a year. The SARS third-party data page states that data for the full tax year (1 March to the end of February) is submitted between 1 April and 31 May, and data for the first half of the year (1 March to 31 August) between 1 September and 31 October.
Why did my bank send a certificate in October?
That is the bi-annual submission. SARS announced that the 2026 bi-annual period runs from 1 September to 31 October 2026 for the reporting period ending 31 August 2026. A certificate you receive then covers the first six months of the 2027 tax year, not a full year, and it is not the figure for your 2026 ITR12.
Which certificate do I use for my annual return?
Use the full-year certificate for the tax year you are filing. For the 2026 year of assessment that is the period 1 March 2025 to 28 February 2026. The ITR12 guide lists certificates for local interest, foreign interest and foreign dividends among the documents needed to complete the return.
How Does the Interest Exemption Apply to IT3(b) Interest?
Local interest on your IT3(b) is exempt up to an annual limit, and only the excess is taxable. Section 10(1)(i) of the Income Tax Act 58 of 1962 provides the exemption, and the SARS interest and dividends rates page sets it at R23 800 a year for a person younger than 65 and R34 500 for a person aged 65 or older, unchanged for the 2027 year.
Is foreign interest exempt too?
No. The ITR12 guide states that foreign dividends and foreign interest are not exempt under section 10(1)(i). Foreign interest under code 4218 is taxed in full, with a credit for foreign tax under code 4113 where it applies.
What if my tax year is shorter than 12 months?
The ITR12 guide states that from 1 March 2023 the exemption is apportioned by the number of days in the assessment period where the year is shorter than 12 months, for example when an individual ceases to be resident, dies or becomes insolvent. A deceased estate has an exemption of R23 800.
Do I have to declare interest below the exemption?
Yes. Declare the gross interest and let SARS apply the exemption. The prefilled amount on your return is the gross figure from the IT3(b), and the exemption is calculated on the assessment.
What about interest paid to a non-resident?
Interest paid to a non-resident may fall under section 10(1)(h) or withholding tax on interest at 15%, both described on the SARS rates page. Our guide to section 10(1)(h) on the 2026 ITR12 covers that return line account by account.
How Does IT3(b) Data Appear on Your ITR12?
IT3(b) data is prefilled per institution and locked. The ITR12 guide states that the interest per institution is prepopulated with third-party data received and locked, and that editing is allowed only on the 30th institution line or for a deceased or insolvent taxpayer.
Can I change a prefilled IT3(b) amount?
No. The guide directs you to contact the third party to rectify and resend the correct data to SARS. You can add an institution SARS does not show using the Add button, and delete a line that does not belong to you or your spouse.
What happens if I am married in community of property?
The certificate is issued to the spouse who owns the account. The ITR12 guide states that where spouses are linked on the SARS system, IT3(b) data is prefilled on both returns, the investment income is apportioned, and SARS applies the 50% split and the exemptions. Interest that falls outside the communal estate is marked with the communal estate indicator next to the institution.
What if I have more than 30 accounts?
The return holds 30 institutions. The guide states that additional amounts are consolidated and added to the amount for the 30th institution.
Can I claim interest expenses against IT3(b) interest?
Only interest expenses incurred to produce the interest income. From the 2026 year of assessment the ITR12 has a field per institution. The guide states that the expense cannot create a loss, bank charges are excluded, and full particulars of amounts invested and borrowed are kept for five years.
How Do You View Your IT3(b) on eFiling, Step by Step?
You can view and download the IT3(b) data SARS holds for you through the Third Party Data Certificate Search on eFiling. The steps below follow the SARS guide GEN-ENR-01-G09, How to View Tax Certificates or Third Party Data Files via eFiling (revision 1, effective 7 April 2026).
- Log in to eFiling. Your income tax type must be activated on your profile.
- Open Third Party Data Certificate Search. It is on the left menu and opens the Request Third Party Certificates screen.
- Select the Certificate Type and Tax Year. These are the only two fields you choose; your personal details are prefilled and changed only through the RAV01 form.
- Click Submit Query. The certificates SARS holds for that type and year are listed.
- Download Certificate. SARS shows a message that the downloaded certificate cannot be used to submit to SARS; it is for checking.
- Compare it to the ITR12. Open the return, go to the investment income section and check each institution and source code against the certificate.
- Query a wrong item. Choose a Query Reason, click Submit Query and then Query Certificate, and notify the institution that issued the data.
Can my tax practitioner see my IT3(b)?
Yes. The G09 guide states that a registered tax practitioner with a confirmed status, or a user with delegated practitioner rights, can view a client's tax certificates where the client has an activated tax type.
What If Your IT3(b) Is Missing or Wrong?
A missing or wrong IT3(b) is corrected by the institution that issued it, not on the return. The G09 guide states that taxpayers take certificate queries to their third-party data provider, and that the provider directs corrections to the SARS Third Party Data Unit before resubmitting.
What if the certificate arrives after I filed?
The ITR12 guide states that where new or updated third-party data arrives after an assessment, SARS decides whether it affects the assessment. If you were auto-assessed, SARS may issue a newer auto-assessment. If you filed, SARS notifies you and you may file an amended return; if you do not, the assessment is revised automatically. See our guide to what to do with a 2026 auto-assessment.
What if an account on the return is not mine?
Use the Delete icon next to that institution on the return, as the ITR12 guide allows for information that does not belong to you or your spouse, and keep the bank's confirmation that the account is not yours.
What if I disagree with an assessment based on IT3(b) data?
Where the institution confirms its data and you still disagree with the result, the route is a correction of the return or a dispute. See our guides to the Request for Correction and the Notice of Objection.
What Are the Common Mistakes With an IT3(b)?
Most IT3(b) errors come from reading the wrong certificate or adding an amount twice. These are the ones to check before you file.
Using the half-year certificate
A certificate for 1 March to 31 August is the bi-annual submission for the current year. Filing it as the annual figure understates or misstates the year.
Adding a prefilled account again
Clicking Add for an institution that is already prefilled declares the same interest twice. Compare institution names before you add a line.
Netting off the exemption yourself
Entering interest after deducting R23 800 means the exemption is applied twice. Declare the gross figure from the certificate.
Treating foreign interest as exempt
The section 10(1)(i) exemption is for local interest only. Foreign interest under 4218 is taxable in full, and our guide to investing overseas from South Africa explains the foreign income rules.
Ignoring interest with no certificate
Interest on a private loan, or from an institution that has not submitted, is still income. Declare it with the Add button and keep the records SARS may ask for at verification. Our checklist of documents needed to file a tax return lists what to keep.
Do You Need Help With Your IT3(b)?
If your interest is spread over several banks, you are married in community of property, you ceased to be resident during the year, or a certificate arrived after you filed, we check each IT3(b) against your ITR12 before it is filed and deal with SARS for you. Our fixed fees for individual returns are on our personal tax pricing page, more guides are in our personal tax hub, and you can book a call through our contact page.
