South Africa: South African Revenue Service Updates Interest Rate Tables

South Africa: South African Revenue Service Updates Interest Rate Tables


The South African Revenue Service (SARS) published updated interest rate tables on 18 January 2022, including:
  • 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 certain delayed refunds, which is increased from 7.0% to 7.25% with effect from 1 March 2022 (previously reduced from 7.25% to 7.0% from 1 November 2020); and
  • Table 2 - Interest rates payable on credit amounts (overpayment of provisional tax), which is increased from 3.00% to 3.25% from 1 March 2022 (previously reduced from 3.25% to 3.00% from 1 November 2020).
SARS also published an updated interest rate Table 3 on 28 January 2022 regarding the rates at which interest-free or low-interest loans are subject to income tax, which is increased from 4.75% to 5.00% with effect from 1 February 2022 (previously increased from 4.50% to 4.75% from 1 December 2021).
A taxable benefit (fringe benefit) arises if an employee incurs a debt in favor of the employer, any other person by arrangement with the employer, or an associated institution in relation to the employer, if no interest is payable or if the interest payable is less than the "official rate of interest" as provided in Table 3. The difference between the amount which would have been payable if the debt had incurred interest at the official rate, and the interest actually paid by the employee, is taxed as a fringe benefit.