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Fringe Benefit Tax Calculator - Kenya

Fringe Benefit Tax, Market Lending Rates
MonthInterest Rate (p.a)
August 20217%
September 20217%
October 20217%
November 20217%
December 20217%
January 20227%
March 20227%
March 20227%
April 20227%
May 20227%
June 20227%
July 20227%

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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