SARS Updated Interest Rates effective 1 September 2025
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What’s New?
On 7 July 2025, SARS updated two key interest rate tables under the Income Tax Act:
Table 1 – Interest on outstanding taxes, duties, levies, and refunds
Table 2 – Interest on credit amounts (e.g. overpaid provisional tax)
These rates are essential for calculating penalties on late payments, refunds due, and interest owed on tax credits.
Table 1: Rates on Outstanding Tax & Refunds
From 1 May – 31 August 2025: 11.00% per annum
From 1 September 2025: 10.75% per annum.
Use-case for accountants:
Calculate interest on late tax payments.
Estimate interest refunds on appeals or delayed payouts.
Table 2: Interest on Credit Amounts
The interest rate on credit amounts was updated on 7 July 2025, with effective dates tied to SARS’s repo rate adjustment from the SARB.
The current official rate (repo rate + 1%) is 7% per annum, in effect from 1 May – 31 August 2025.
From 1 September 2025: 6.75% per annum.
Action Points for Accountants
Update your interest calculators: Reflect the new rates in your models and systems. Apply the correct rates when calculating interest owed to taxpayers for overpaid provisional tax.
Review client positions: Check who is owed interest or liable for overpayment penalties.
Plan ahead: Anticipate changes after SARS adjusts the PFMA-linked rate later in 2025.
Read more on the Tables of Interest rates o the SARS website.
