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Low or Interest Free Loan/Debt Fringe Benefit - New Repo Rate Effective February 2023

The repurchase rate (repo rate) increased from 7% to 7.25% on 27 January 2023. As of February, 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%

= 7.25 + 1%

= 8.25%

Resbank-Current Market Rates

Note: Please ensure to review all reports and calculations which make use of this rate in the applicable month.