The repurchase rate (repo rate) has increased from 6.5% to 6.75% on 23 November 2018.  

As from December 2018, the ‘low or interest free loans/debt’ fringe benefit should be calculated by using the new ‘official interest rate’.

How is the "official interest rate" calculated?

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

= Repo rate + 1%

= 7.75%

Should you use the official interest rate in your Method of Calculation, reports or ASCII imports, ensure to make the the necessary changes in your December payroll.

Cick here to visit the Reserve Bank website