Updated Tables of Interest Rates for May 2025 β What You Need to Note
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SARS has released updated interest rates, effective 1 May 2025, covering two key areas that impact tax calculations:
π Table 1 β Interest on Outstanding Taxes & Refunds
This rate applies when taxpayers pay taxes lateβor when SARS owes interest on refunds after successful appeals or delays.
π Table 2 β Interest on Overpaid Provisional Tax
If a taxpayer overpays provisional tax, SARS pays interest at this rate in terms of section 89quat(4) of the Income Tax Act.
Why this matters
These rates affect how penalties, late payments, and provisional tax refunds are calculated. Staying up to date helps avoid errors and surprises for your clients.
π§Ύ Check the latest interest tables on the SARS website.
Let your tax team and clients knowβtiming and accuracy just got even more important.