The "official rate of interest" for calculating fringe benefits has been reduced from 8.5% to 8% with effect from 1 September 2005. The Income Tax Act, 1962 provides that a taxable fringe benefit arises where an employee obtains a loan from the employer on which no interest is payable or on which interest is charged at a rate that is lower than the "official rate of interest" as prescribed by the Minister of Finance

...back to 8 September 2005


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Reduction in official rate of interest for purpose of determining a fringe benefit
South African Revenue Service

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