Fringe Benefit Tax, Deemed Interest Rate & Low interest Rate

PUBLIC NOTICES 15/07/2020

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 July, August and September 2020.

DEEMED INTEREST RATE

For purposes of section 16(5), the prescribed rate of interest is 7%. This is applicable for the months of July, August and September 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 July-December 2020 shall be 7%.

 

Commissioner of Domestic Taxes