Kenya Sets Market and Deemed Interest Rates for Fringe Benefit Tax and Non-Resident Loans

The Kenya Revenue Authority has issued a notice on the market interest rate for fringe benefit tax purposes and the deemed interest rate for certain non-resident loans.

Fringe benefit tax is payable by employers in respect of a loan provided at an interest rate lower than the market interest rate to a director or an employee. The taxable value of the fringe benefit is the difference between the interest that would have been payable on the loan if calculated at the market interest rate and t…