MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Fringe Benefits Tax Interest Rate Reduced

By

SARS

The official rate of interest for calculating fringe benefits will be reduced by 50 basis points to 6.5 percent, with effect from 1 March 2011.

The South African Revenue Service said on Tuesday the reduction was due to amendments to the definition of the “official rate of interest” in the Seventh Schedule to the Income Tax Act, 1962, by section 90 of the Taxation Laws Amendment Act, 2010, coming into effect.

The amended definition of “official rate of interest” provides that the official rate, in the case of a loan denominated in Rand, is equal to the South African repurchase rate plus 1 percent with effect from 1 March 2011.

The current repurchase rate of 5.5 percent plus 1 percent will therefore result in an official rate of 6.5 percent. – BuaNews

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.