The repurchase rate (repo rate) has increased from 4.75% to 5.5% on 22 July 2022. As from August 2022.

 As from August 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%

= 5.5% + 1%

= 6.5%

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 all reports and calculations which make use of this rate in the applicable month.