Paymaster Magazine

Newsflash 2 June 2022

WHATS New in Paymaster

Please read more on the new features and enhancements to the system for the week of 2 June 2022.

Click on the link for more information regarding:

Example

  • Ethiopia (Sep-Aug) New Country build Tax year Oct to Sept
  • Namibia | Housing Fringe Benefit Taxbility Enhancements
  • Rwanda | Changes made to CSR, CBHIS and Maternity Income Bases
  • South Africa | EEA2 Report Enhancement

RSA - Interest Rate Change

From the Team


June 2022

The “official rate of interest” for calculating the taxable benefit on low interest or interest-free loans has increased by 0.50% with effect from 01 June 2022.

Click here for the SARS official document.

Interest Rate Increase

Where a loan is obtained by an employee from his employer and either no interest is payable or the interest payable is less than the “official rate of interest”, the difference between the amounts calculated at the official rate of interest, and the amount calculated at the interest rate applied by the employer, is a taxable fringe benefit. The fringe benefit value must be processed in the payroll and reported on the tax certificate against the general fringe benefits SARS Source Code 3801.

The “official rate of interest” is defined in Section 1(1) of the Income Tax Act as the rate of interest that is equal to the RSA repurchase rate (“repo rate”) plus 100 basis points (1%). The official rate of interest changes from the first day of the month following the date on which the repo rate change comes into effect.

The repo rate was increased from 4.25% to 4.75% on the 20th of May 2022 and the Official Rate of Interest is therefore 5.75% effective from 01 June 2022.

Paymaster Impact

  • The new interest rate has been implemented on the system effective 01 June 2022.
  • Customers with the fringe benefit for loans have been recalculated.
  • No other statutory changes have been announced.

Senegal - IPRES ceiling increase

From the Team


June 2022

On the 25th of February 2022, a notice was issued by Institution de Prévoyance Retraite du Sénégal (IPRES) announcing the increase of the monthly ceiling on which IPRES is based. An increase of FCFA 360 000.00 to FCFA 432 000.00 for the Regime General and FCFA 1 080 000.00 to FCFA 1 296 000.00 for the Regime Des Cadre was announced. The effective date was originally published as 1 April 2022 which was later postponed to 1 June 2022. This is a friendly reminder that the ceiling amounts on the system have been changed effective 1 June 2022.

Click here for the official document.

Ceiling increase

The contribution will be calculated by comparing the monthly IPRES income to the monthly ceiling on both the MTD and YTD Averaging tax methods.

Paymaster Impact

  • The new ceilings have been implemented on the system effective 01 June 2022.
  • All customer payrolls have been recalculated.
  • No other statutory changes have been announced.

Click here for the previous NewsFlash

Lezé Felton

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