2019 Interest on Company Loans as Fringe Benefits

The term “official rate of interest” is defined in section 1(1) of the Income Tax Act 58 of 1962 (the Act)  Where a loan is obtained by an employee from his or her employer in terms of which no interest is payable or where the interest payable is less than the “official rate of interest”, the difference between the amount which would have been payable if the loan was granted at the official rate and the amount actually paid by the employee, is taxed as a fringe benefit. 
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