Interest Rate Changes | May 2023

Income Tax Act, 1962: Table of Interest Rates

Table 1: Interest rates on outstanding taxes and interest rates payable on certain refunds of tax (click to see):

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.
Date from	Date to	Rate
1.05.2023	30.06.2023	10.75%
1.07.2023	Until change in PFMA rate	11.25%

Table 2: Interest rates payable on credit amounts (click to see):

Interest rates payable on credit amounts (overpayment of provisional tax) under section 89quat(4) of the Income Tax Act 58 of 1962
Date from	Date to	Rate
1.05.2023	30.06.2023	6.75%
1.07.2023	Until change in PFMA rate	7.25%

Table 3: Rates at which interest-free or low interest loans are subject to income tax (click to see):

Section 1(1) of the Income Tax Act 58 of 1962 (the Act) defines “official rate of interest” as: “A taxable benefit (fringe benefit) arises if an employee incurs a debt in favour 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”. 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.”
Date from	Date to	Rate
1.04.2023	Until change in PFMA rate	8.75%