On the 22nd of January 2024, the Commissioner for Domestic Taxes announced the following via Public Notice.
Kindly be advised on the Fringe Benefit & Deemed Interest Rate for the months of January, February, and March 2024.
Please also take note of the Low-Interest Benefit rate for the months of January, February, March, April, May, and June 2024.
Fringe Benefit Tax
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 15%. This rate shall be applicable for the months of January, February and March 2024.
Deemed Interest Rate
For purposes of Section 16(2)(ja) of the Income Tax Act, the prescribed rate of interest is 15%. This rate shall be applicable for the months of January, February and March 2024.
Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner within five working days following the computation.
Low Interest Benefit
For purposes of section 5(2A), the prescribed rate of interest is 14%. This rate is applicable for the months of January, February, March, April, May and June 2024.
Fringe Benefit Tax,Deemed Interest Rate and Low Interest Benefit - KRA