The Kenya Revenue Authority has released a public notice regarding the market interest rate applicable to fringe benefit tax and the deemed interest rate for specific non-resident loans for July, August, and September, 2024.
Additionally, the notice outlines the updated prescribed interest rate for low-interest loans, which has been raised from 14% to 16% from July to August 2024.
The new interest rates are as follows:
Fringe benefit tax
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 16%. This rate shall be applicable for the three months of July, August and September 2024.
Deemed interest rate
For purposes of Section 16(2)(a) of the Income Tax Act, the prescribed interest rate is 16%. This rate applies to July, August, and September 2024. The 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) of the Income Tax Act, the prescribed interest rate is 16%. This rate is applicable for July, August, September, October, November and December 2024.
