The repurchase rate (repo rate) has increased from 7% to 7.25% on 27 January 2023. As from February, the ‘low or interest free loan/debt’ fringe benefit should be calculated by using the new ‘official interest rate’.
The ‘official interest rate’ as defined in section 1 of the Income Tax Act:
= repo rate + 1%
= 7.25 + 1%
= 8.25%
https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates
To apply this change on the People application do the below.
When Navigating to:
Expand Company Management
Double Click on Company
Select RSA Company
Drop down on the Official interest rate and insert the correct value