The value of Fringe Benefit is calculated to be the difference between the interest that would have been payable on the loan if calculated at the market interest rate and the actual interest paid.
Fringe benefit is taxable at corporation rate of tax of 30% of the determined value of the benefit.
Fringe benefit tax is charged on the total taxable value of Fringe benefit each month and the tax is payable before the 10th day of the following month in the same way as normal P.A.Y.E. remittance. Employers will therefore pool together all the Fringe benefits for the employees in each month.
