On 13 September 2022, the South African Revenue Service (SARS) issued updated interest rate tables. The South African Reserve Bank changed the “repo rate” on 22 September 2022, effective on 1 October 2022. The tables of interest rates are following:

Table 1

Interest rates charged on outstanding taxes, duties, and levies and interest rates payable in respect of refunds of tax on successful appeals and certainly delayed refunds, which is increased from 8.25% to 9.0% with effect from 1 November 2022 (previously increased from 7.75% to 8.25% from 1 September 2022).

Table 2

Interest rates payable on credit amounts (overpayment of provisional tax), increased from 4.25% to 5.0% from 1 November 2022 (previously increased from 3.75% to 4.25% from 1 September 2022).

Table 3

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 6.50% to 7.25% with effect from 1 October 2022 (previously increased from 5.75% to 6.50% from 1 August 2022).