SARS interest on unpaid taxes – how the changes hit your pocket
From 1 October 2012, SARS has changed their policy relating to interest due to SARS for unpaid taxes:
- Interest will now be raised on any outstanding taxes due to SARS (past the respective deadlines) – Applies not just to provisional taxpayers, but also to salaried taxpayers.
Example – Annual tax settled 6 months after year (7 months for February year-ends)
- Interest is now also calculated on the daily balance owing compounded monthly.
- Interest is raised at the prescribed rate linked to PFMA rate – changes to these will only be effective the 1st day of the month following a rate change.
Although SARS’ internal systems still have to be amended to incorporate the change in calculations, don’t be fooled – avoid SARS interest charges, pay when required!
All material subject to our Legal Disclaimers.