It is important to remember that interest and penalties paid to SARS are not deductible expenses for income tax purposes. On the other hand, interest received from SARS is fully taxable (after deducting the current initial exemption of R23 800 per annum (R34 500 if you are 65 or older) for all local interest income earned by natural persons).
Income Tax, Provisional Tax, Dividends Tax, etc: Payable to SARS on short payments of all such taxes (other than VAT): 10.5% per annum from 1 March 2023 (was 9.75% per annum with effect from 1 January 2023).
Payable by SARS on refunds of tax (where interest is applicable): 6.5% per annum from 1 March 2023 (was 5.75% per annum with effect from 1 January 2023).
If the refund is made after a successful tax appeal or where the appeal is conceded by SARS, the interest rate is 10.5% per annum from 1 March 2023 (was 9.75% per annum from 1 January 2023).
VAT: Payable to SARS on late payments: 10.5% per annum from 1 March 2023 (was 9.75% p.a. from 1 January 2023).
Payable by SARS on VAT refunds after prescribed period: 10.5% per annum from 1 March 2023 (was 9.75% from 1 January 2023).
Fringe Benefits: Official interest rate for loans to employees below which a deemed fringe benefit arises: 8.25% from 1 February 2023. See below for details of historical changes.
Dividends Tax: Official interest rate for loans (designated in Rands) to shareholders below which the interest on such loans can be deemed to be dividends on which Dividends Tax is payable: 8.25% per annum from 1 February 2023. See below for details of historical changes.