New official interest rate for tax calculations

Effective 01 August 2014, the interest rate to be used for fringe benefit calculations will increase to 6.75%.

This means that whenever an employer issues a staff loan to an employee, the employer should charge interest on the loan at at least 6.75%. If the interest  charged by the employer is less than the official interest rate then the difference in interest payable results in a taxable fringe benefit.

1 Comment

Filed under HR, Industry Information, Legislative Updates

One response to “New official interest rate for tax calculations

  1. Catherine

    Unbelievable!

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