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Fringe Benefit Tax Calculator - Kenya

Fringe Benefit Tax, Market Lending Rates
MonthInterest Rate (p.a)
February 20188%
March 20188%
April 20188%
May 20188%
June 20188%
July 20188%
August 20188%
September 20188%
October 20188%
November 20188%
December 20188%
January 20198%

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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