SARS Interest Calculator
SARS charges interest on all overdue tax at the prescribed rate — currently 11.25% per annum (repo rate + 3.5%). Interest accrues daily from the day after the due date until full payment.
How SARS Interest is Calculated
SARS charges interest on all overdue tax at the prescribed rate, which is calculated as:
Prescribed Rate = Repo Rate + 3.5%
Interest is calculated daily using this formula:
Daily Interest = (Principal x Rate) / 365
The current prescribed rate is 11.25% per annum. This rate changes whenever the South African Reserve Bank adjusts the repo rate.
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