Kenya Revenue Authority: Unchanged Fringe Benefit Tax Rate at 15% for April to June 2025

• The Kenya Revenue Authority has updated the Fringe Benefit Tax rate at 15%.
• The Deemed Interest Rate has been adjusted upwards from 7.5% to 8.5%.
• Taxpayers who have not complied with tax regulations may face penalties and fines.
• Lawyers should stay informed about these changes to advise clients on tax compliance matters.

The updated Fringe Benefit Tax and Deemed Interest Rate are crucial updates for lawyers and tax professionals who advise clients on tax compliance matters.

The Kenya Revenue Authority (KRA) has issued public notices regarding the Fringe Benefit Tax and Deemed Interest Rate for the period of April to June 2025. The notices were published on April 8, 2025, as part of the KRA's efforts to keep taxpayers informed about tax updates. According to the notices, the Fringe Benefit Tax rate remains unchanged at 15% of the grossed-up value of fringe benefits provided by employers to their employees. However, the Deemed Interest Rate has been adjusted upwards from 7.5% to 8.5%. This change is expected to impact taxpayers who have not complied with tax regulations and may face penalties and fines as a result.

The Fringe Benefit Tax is a type of tax levied on employers for providing non-monetary benefits to their employees. The Deemed Interest Rate, on the other hand, is used by the KRA to calculate the interest payable on outstanding taxes. Both of these rates are critical components of Kenya's tax compliance framework and play a significant role in ensuring that taxpayers meet their obligations. As such, any changes to these rates can have far-reaching implications for businesses and individuals alike.

The updated Fringe Benefit Tax and Deemed Interest Rate are crucial updates for lawyers and tax professionals who advise clients on tax compliance matters. Non-compliance with tax regulations can result in significant penalties and fines, which can be avoided by staying informed about the latest tax developments. As such, it is essential for lawyers to keep abreast of these changes and advise their clients accordingly to avoid any potential pitfalls.

Lawyers should watch for the updated Fringe Benefit Tax and Deemed Interest Rate, as non-compliance may lead to penalties and fines.

Source: Original reporting via Kenya Revenue Authority public notices