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South Africa Reduces Official Interest Rate for Taxation of Interest-Free or Low-Interest Loans

|Approved Changes|South Africa
South Africa

The South African Revenue Service (SARS) recently published an updated interest rate Table 3 regarding the official interest rate for the taxation of interest-free or low-interest loans, which is reduced from 8.50% to 8.25% with effect from 1 June 2025. A taxable benefit (fringe benefit) arises if an employee incurs a debt in favor of the employer, any other person by arrangement with the empl…

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