Company Management – Company – Update Official Interest Rate
Summary
Description
A taxable benefit arises when a loan has been granted to the employee;
• Either by the employer or by the arrangement by the employer. Or
• With no interest being payable by the employee, or with interest at a rate lower than the official rate of interest.
No taxable value is calculated for a low interest loan;
• if it is a ‘casual’ loan and the total balance of these loans does not exceed R3 000 at any time; or
• if it is a loan to enable the employee to study.
Resolution
From the Navigation Pane
Expand Company Management
Double Click on Company
Double Click on Company
Complete the rate in the official interest rate field.
The benefit value is the amount of interest determined by calculating the interest at the official rate of interest, and deducting the interest actually paid, and may be applied on a regular basis, or at the end of the tax year.
The official interest rate completed on the Company screen will be compared against the interest rate completed on the loan definition of the employee to calculate the fringe benefit value.
Solution Properties
- Solution ID
- 200410201022280
- Last Modified Date
- Wed Mar 23 14:23:45 UTC 2022
- Views
- 0