Interest rate for Fringe benefit
The interest rate (also known as official interest rate/SARS interest rate) applicable to interest-free or low-interest loans is 8,5% with effect from 1 February 2025.

Other items (pending implementation date)
The following items listed were also mentioned in the Minister’s Budget speech, however, no effective date has been made available. As soon as more information is available, the PAGSA will inform members via a newsflash.

Amendment to the Definition of “Remuneration Proxy”:
The term “remuneration proxy”, as defined in the Income Tax Act (1962), is often considered equivalent to “remuneration” as defined in the Fourth Schedule to the Income Tax Act. This equivalence is particularly important when “remuneration proxy” is used as a surrogate to calculate remuneration for the current year of assessment.
However, an unintended benefit arises for certain employees who, in the previous year of assessment, qualified for and claimed an exemption for foreign employment income. These employees may have a reduced remuneration amount in the current year when determining the value of a domestic residential accommodation taxable benefit. In this context, variable “A” in the formula relies on the definition of “remuneration proxy” in section 1 of the Act.
It is proposed that the definition of “remuneration proxy” be amended to include amounts that were exempted under section 10(1)(o)(ii) of the Act.