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Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 12 : Interest

189. Rate at which interest is charged


(1) The rate at which interest is payable under section 187 is the prescribed rate.


(2) In the case of interest payable with respect to refunds on assessment of provisional tax and employees' tax for purposes of final assessment of income tax or of mineral and petroleum resources royalty paid for the relevant year of assessment, the rate payable by SARS is four percentage points below the prescribed rate.

[Section 189(2) substituted by section 33 of  the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]


(3) The prescribed rate is the interest rate that the Minister may from time to time fix by notice in the Gazette under section 80(1)(b) of the Public Finance Management Act, 1999 (Act No. 1 of 1999).


(4) If the Minister fixes a different interest rate referred to in subsection (3) the new rate comes into operation on the first day of the second month following the month in which the new rate becomes effective for purposes of the Public Finance Management Act, 1999.


(5) If interest is payable under this Chapter and the rate at which the interest is payable has with effect from any date been altered, and the interest is payable in respect of any period or portion thereof which commenced before the said date, the interest to be determined in respect of—
(a) the period or portion thereof which ended immediately before the said date; or
(b) the portion of the period which was completed before the said date, must be calculated as if the rate had not been altered.

[Section 189(5) substituted by section 67 of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]