Taxes–Workers getting loans from their employers have been hit with a new tax increment in the latest State review.
In a fresh notice of Tuesday January 23, the Kenya Revenue Authority announced an increased tax rate on loans offered to Kenyans at their workplaces.
This increase dubbed Fringe Benefit Tax rate is now moved from the usual 13 percent to 15 percent as per the new Financial Bill by Kenya Kwanza administration.
Fringe Tax is defined as money paid by employers for every loan they offer their staff. Usually, the loans offered at a place of work have a lower interest rate in comparison with those offered by banks and other financial institutions.
According to the taxman, the new rate will take effect for the first three months of 2024 and urged every employer top adhere to the new directive of face consequences.
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