The repurchase rate (repo rate) increased from 7.25% to 7.75% on 30 March 2023. As from April, the ‘low or interest-free loan/debt’ fringe benefit should be calculated using the new ‘official interest rate’.

The ‘official interest rate’ as defined in section 1 of the Income Tax Act:

= repo rate + 1%

= 7.75% + 1%

= 8.75%

Current Market Rates (resbank.co.za)

Note: Please review all reports and calculations that use this rate in the applicable month.