Updated interest rates charged in terms of the legislation administered by SARS are split into three main categories, namely –
Table 1. interest charged on outstanding taxes, duties and levies and those payable in respect of refunds of tax on successful appeals and certain delayed refunds:
- Rate is updated from 9% to 9.75% effective 1 January 2023.
Table 2. interest payable on credit amounts (overpayment of provisional tax):
- Rate is updated from 5% to 5.75% effective 1 January 2023.
Table 3. Rates at which interest-free or low interest loans are subject to income tax:
- The rate is 7.25% effective 1 October 2022, subject to changes in the ‘repo rate’ determined by the South African Reserve Bank.
You can visit the SARS website and read more on this here.
