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Fringe Benefit Tax Calculator - Kenya

Fringe Benefit Tax, Market Lending Rates
MonthInterest Rate (p.a)
January 202415%
February 202415%
March 202415%
April 202416%
May 202416%
June 202416%
July 202416%
August 202416%
September 202416%
October 202416%
November 202416%
December 202416%

Low Interest Benefit

Low Interest Benefit occurs when an employer extends a loan to an employee at an interest rate lower than the prescribed interest rate (market lending rate) as a benefit of employment. See PAYE guide 2017 for more details

Fringe Benefit Tax

Low interest benefit is considered as fringe benefit extended to an employee and is taxable at a rate of 30%. The actual benefit (savings that employee makes) is what is chargeable and not the loan or installment.

The prescribed rate of interest is based on the market lending rates as the Commissioner may prescribe from time to time. These are typically lower than bank lending rates

The fringe benefit tax is calculated separately from the PAYE calculations and filed on its on sheet in the P10 Returns Excel File.

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