Official Rate of Interest for Determining the Fringe Benefit Value on Low or Interest-free Loans
Effective 1 August 2012, kindly note that the Official Rate of Interest for determining the Fringe Benefit value on low or interest free loans provided to Employees is now 6.0%. This change is due to the SA Reserve Bank’s decision to reduce the repo rate to 5.0%, effective 20 July 2012.
The Official Rate of Interest calculated is based on the repo rate (currently 5.0%) plus 100 basis points – therefore 6.0%.