The repurchase rate (repo rate) has decreased from 5.25% to 4.25% on 15 April 2020

As from May 2020, 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%

= 4.25% + 1%

= 5.25%

View the latest repurchase rate at https://www.resbank.co.za/Research/Rates/Pages/CurrentMarketRates.aspx.

If you apply the interest rate in Methods of Calculation, ASCII or reports, please ensure to apply your changes in your payroll accordingly.