New Repurchase Rate Effective August 2019 - affecting Low or Interest Free Loan/Debt Fringe Benefit

The repurchase rate (repo rate) has decreased from 6.75% to 6.50% on 19 July 2019.

As from August 2019, 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%

= 6.50% + 1%

= 7.50%

https://www.resbank.co.za/Research/Rates/Pages/CurrentMarketRates.aspx