The repurchase rate (repo rate)  decreased from 7.75% to 7.5% on 31 January 2025.

As from February 2025, 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%

= 7.5% + 1%

= 8.5%

Sources:

• SARS Interest Rate Tables
• Current Market Rates (resbank.co.za)

Note: Check all reports and system calculations that utilise this rate for the relevant month.