Lezé Felton
WHATS New in Paymaster
Please read more on the new features and enhancements to the system for the week of 5 August 2022.
Click on the link for more information regarding:
Example
- Automatic ESS registration email
- Company run errors – only show errors relevant to the current frequency
- Namibia ITAS report Tax Code mapping update
- Zimbabwe Old Age Relief
RSA - Interest Rate Change
From the Team
August 2022
The “official rate of interest” for calculating the taxable benefit on low interest or interest-free loans has increased by 0.75% with effect from 01 August 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 4.75% to 5.50% on the 22nd of July 2022 and the Official Rate of Interest is therefore 6.50% effective from 01 August 2022.
Paymaster Impact
- The new interest rate has been implemented on the system effective 01 August 2022
- Customers with the fringe benefit for loans component have been recalculated.
- No other statutory changes have been announced.
Kenya - Interest Rates Quarter 3 of 2022
From the Team
August 2022
Fringe Benefit Tax
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 8% applicable for the months of July, August and September 2022.
Fringe benefit tax shall apply to loans provided after 11 June 1998.
Low Interest Rate
For the purposes of Section 5(2A), the low interest rate is 7%. This rate is applicable for the months of July, August, September, October, November and December 2022.
The low interest benefit applies to loans provided on or before 11 June 1998.
Click here for the official notice from the Kenya Revenue Authority.
Official Interest Rates
Official Interest Rates for July to September 2022:
Paymaster Impact
- The new rate has been implemented on the system effective 01 August 2022.
- No other statutory changes have been announced.
- All Kenya payrolls have been recalculated.
Namibia Payroll Tax Guide
We have put together a handy infographic for Namibia 2021/2022 Tax Year.
Download your copy now!
Go to Newsflash Africa on our website here.
Click here for the previous NewsFlash
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