The repurchase rate (repo rate) has decreased from 3.75% to 3.50% on 24 July 2020.

As from August 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%

= 3.50% + 1%

= 4.50%

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.