On 14 March 2022, the South African Revenue Service (‘SARS’) revised the interest rates tables for 2022.
There are three tables:
- Table 1
- Table 2
- Table 3
Table 1
Table 1 provides for Interest rates charged on outstanding taxes, duties and levies and interest rates payable in respect of refunds of tax on successful appeals and certain delayed refunds.
Until 30 April 2022, the interest rate is fixed at 7.25%.
As of 1 May 2022, the interest rate is increased to 7.5%.
Table 2
Table 2 provides for interest rates payable on credit amounts
Until 30 April 2022, the interest rate is fixed at 3.25%.
As of 1 May 2022, the interest rate is increased to 3.50%.
Table 3
Table 3 provides for the “official rate of interest” provided under section 1(1) of the Income Tax Act 1962. The official rate is linked to the repurchase rate plus 1%.
Table 3 provides the rates at which interest-free or low-interest loans are subject to income tax.
Until 31 March 2022, the rate was 5%.
As of 1 April 2022, the rate was increased to 5.25%.
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