Official Interest Rate Change
Please be advised that the “SARS Official Interest Rate” for calculating fringe benefits has decreased by 0.25%, effective since the 1st of August 2019.
The “SARS Official Interest Rate” that must be used is 7.5% as of the
1st of August 2019.
“Where a loan is obtained by an employee from his/her employer and either no interest is payable or interest is payable at less than the “Official Interest Rate”, the difference between the amounts calculated at the official rate of interest, and the amount calculated at the interest rate applied by the employer, is a taxable fringe benefit. The fringe benefit value must be processed in the payroll and reported on the tax certificate against the general code 3801.”