Dear Community
The repurchase rate (repo rate) has increased from 5.5% to 6.25% on 23 September 2022. As of October 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%
= 6.26% + 1%
= 7.25%
Click here to find the current market rates.