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.