The repurchase rate (repo rate) decreased from 7.50% to 7.25% on 29 May 2025.
As from June 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%
= 7.25% + 1%
= 8.25%
Note: Review and amend all reports and system calculations that utilise this rate in the effective pay period.
Sources: