The repurchase rate (repo rate) decreased from 7.00% to 6.75% on 20 November 2025.
As from December 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%
= 6.75% + 1%
= 7.75%
Note: Review and amend all reports and system calculations that utilise this rate in the effective pay period. Contact your accredited Business Partner consultant if your need assistance updating your system with the new rates.
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