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Low or Interest Free Loan/Debt Fringe Benefit - New Repo Rate Effective June 2022

The repurchase rate (repo rate) has increased from 4.25% to 4.75% on 20 May 2022.

As from June 2022, 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%

= 4.75% + 1%

= 5.75%

View all official rates on the Reserve Bank website: 

https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates

Ensure to review and reports and calculations which make use of this rate in the applicable month.