OFFICIAL INTEREST RATE UNCHANGED
The monetary policy committee of the South African Reserve Bank has decided to keep the repo rate unchanged at 6.5%. The announcement was made on Thursday, 20 September.
For employers, the official interest rate applicable to payrolls is 7.5%.
The definition of “official interest rate” in the Seventh Schedule of the Income Tax Act means:
- In the case of a loan which is denominated in the currency of the Republic, the South African repurchase (repo) rate + 100 basis points; or
- In the case of a loan which is denominated in any other currency, the South African repurchase rate applicable in that currency +100 basis points.
Where a new repurchase rate or equivalent rate is determined, the new interest rate applies for the purposes of this definition from the first day of the month following the date on which that new repurchase rate or equivalent rate comes into operation.
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