On 18 May 2022, the South African Revenue Service (SARS) published updated interest rate tables. The South African Reserve Bank changed the “repo rate” on 19 May 2022, effective 1 June 2022. For ease of reference, the tables of interest rates are given below in three separate documents, numbered according to the following three categories:
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 7.50% to 7.75% with effect from 1 July 2022 (previously increased from 7.25% to 7.50% from 1 May 2022); and
Interest rates payable on credit amounts (overpayment of provisional tax), increased from 3.50% to 3.75% from 1 July 2022 (previously increased from 3.25% to 3.50% from 1 May 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 5.75 % with effect from 1 June 2022 (updated on 24 May 2022).