The South African Revenue Service (SARS) has recently released updated interest rate tables updated on 14 March 2022. Interest rates charged in terms of the legislation administered by SARS are split into three main categories, i.e. –
- Table 1: The table includes interest charged on outstanding taxes, duties and levies and those payable in respect of refunds of tax on successful appeals and certain delayed refunds.
- Table 2: The table includes interest payable on credit amounts (overpayment of provisional tax) in terms of section 89quat(4) of the Income Tax Act, 1962. And,
- Table 3: This table highlights rates at which interest-free or low interest loans are subject to income tax, which is increased from 5.00% to 5.25% from 1 April 2022. This table was updated on 29 March 2022. Note that, the South African Reserve Bank changed the “repo rate” on 24 March 2022.
