Fringe Benefit Tax (FB) , Deemed Interest Rate And Low Interest Benefit

PUBLIC NOTICES 19/01/2021

FRINGE BENEFIT TAX

For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 7%.  This rate shall be applicable for the three months of January, February and March 2021.

 

DEEMED INTEREST RATE

For purposes of section 16(5), the prescribed rate of interest is 7%. This is applicable for the months of January, February and March 2021.

 

Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner by 20th of the month following the month of computation.

 

LOW INTEREST BENEFIT

For purposes of Section 5(2A) of the Income Tax Act, the prescribed interest rate for the period of six months (January-June 2021) will be 6%.

 

 

Commissioner of Domestic Taxes