Fringe Benefit Tax and Deemed Interest Rate

Summary

For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 9%. For purposes of Section 16(2)(ja) of the Income Tax Act, the prescribed rate of interest is 9%.

Issued by

Commissioner for Micro & Small Taxpayers

Who it affects

Fringe Benefit Tax and Deemed Interest Rate

Action required

Withholding tax rate of 15% on the deemed interest shall be deducted and paid to the Commissioner within 5 working days.