Fringe Benefit Tax, Deemed Interest Rate and Low Interest Benefit

PUBLIC NOTICES 01/08/2022

FRINGE BENEFIT TAX

For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 8%. This rate shall be applicable for the three months of July, August and September 2022.

DEEMED INTEREST RATE

For purposes of section 16(2)(ja) of the Income Tax Act , the prescribed rate of interest is 8%. This rate is applicable for the months of July, August and September 2022. 

LOW INTEREST BENEFIT

For purposes of section 5(2A), the prescribed rate of interest is 7%. This rate is applicable for the months of July, August, September, October, November and December 2022. 

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

 

Commissioner of Domestic Taxes