Interest charged by SARS on outstanding taxes, duties and levies
The rate of interest in the tax Acts at which interest is charged on outstanding taxes, duties and levies is equal to the rate determined by the Minister of Finance in terms of the Public Finance Management Act, 1999. This rate is currently fixed at 13%.
Interest paid by SARS on tax refunds
Provisional tax: The rate of interest payable on refunds of any overpayment of provisional tax is equal to the PFMA interest rate minus four percentage points. This rate is currently fixed at 9%. Appeals and Value-Added Tax (VAT): The rate of interest payable by SARS in respect of refunds made due to successful appeals noted by taxpayers as well as certain delayed VAT refunds is equal to the PFMA interest rate. This rate is currently fixed at 13%.New rates
Following the decrease in the Reserve Bank repo rate in August 2003, the Minister of Finance approved that the PFMA rate be reduced from 13% to 11.5% with effect from 1 December 2003.
Therefore, the new rates applicable from 1 December 2003 are as follows -
The PFMA rate will be published by National Treasury on 28 November 2003 by way of notice in the Gazette and further information can be accessed on the website at http://www.treasury.gov.za.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA