Your Loan Data
Fringe Benefit Tax Calculator - Kenya
| Fringe Benefit Tax, Market Lending Rates | |
|---|---|
| Month | Interest Rate (p.a) |
| October 2020 | 6% |
| November 2020 | 6% |
| December 2020 | 6% |
| January 2021 | 7% |
| February 2021 | 7% |
| March 2021 | 7% |
| April 2021 | 7% |
| May 2021 | 7% |
| June 2021 | 7% |
| July 2021 | 7% |
| August 2021 | 7% |
| September 2021 | 7% |
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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