On 18 January 2022, the South African Revenue Service (SARS) published updated interest tables. The South African Reserve Bank changed the “repo rate” on 27 January 2022. For ease of reference, the tables of interest rates are given below in three separate documents, numbered according to the three main categories:
The table includes Interest rates on outstanding taxes and interest rates payable on certain refunds of tax on successful appeals and certain delayed refunds, which is increased from 7.0% to 7.25% with effect from 1 March 2022.
The table includes Interest rates payable on credit amounts (overpayment of provisional tax) in terms of section 89quat(4) of the Income Tax Act, 1962, which is increased from 3.00% to 3.25% from 1 March 2022.
This table highlights rates at which interest-free or low interest loans are subject to income tax, as described in paragraph (a) of the definition of ‘official rate of interest’ in section 1(1) of the Income Tax Act, 1962, which is increased from 4.75% to 5.00% with effect from 1 February 2022.