KRA sets 9% interest benchmarks for October–December
The interest benchmarks for fringe benefit and deemed-interest calculations are 9% for October–December 2026.
What the source says
KRA has published the interest benchmarks for October, November and December 2026. The market interest rate used for fringe benefit tax purposes under section 12B of the Income Tax Act is 9%. The prescribed rate for deemed interest under section 16(2)(ja) is also 9%. These are interest benchmarks used in the relevant calculations, rather than a general 9% tax on employee benefits. The notice separately states that withholding tax on deemed interest is 15%, with payment to the Commissioner within five working days.
Who should take a closer look?
Payroll and finance teams dealing with relevant employee-loan benefits or deemed-interest arrangements.
Review the quarter's applicable calculations and payment handling against the notice and the relevant loan category.
An editorial suggestion for review, not an additional requirement imposed by the authority.This summary reflects the linked source at the review date. It is general information; the full notice and your circumstances determine its application.
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