The repurchase rate (repo rate) has increased from 7.75% to 8.25% on 25 May 2023. As from June 2023, 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%

= 8.25% + 1%

= 9.25%

Current Market Rates (resbank.co.za)

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