Fringe Benefit Tax, Deemed Interest Rate and Low Interest Benefit

PUBLIC NOTICES 24/01/2020

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 2020.

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 2020.

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 the purposes of section 5(2A) of the Income Tax Act, the prescribed interest rate for the period of six months covering January-June 2020 shall be 7%.