The repurchase rate (repo rate) increased from 7% to 7.25% on 27 January 2023. As of 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%
Note: Please ensure to review all reports and calculations which make use of this rate in the applicable month.