The taxable value of a low-interest loan is the difference between the actual interest on the loan and what the interest would be if this was calculated at the prescribed rate or the market rate.
Gather your information
You will need the:
- employee’s name
- interest rate %
- market rate %
- market rate interest
- prescribed interest rate
- actual interest
- loan balance.
To keep track of the FBT on multiple loans you can also add details such as the year the loan was granted.
Enter the details into our calculator
Select the rate and add GST-exempt or zero-rated fringe benefits
Select either the standard rate or alternate rate.
Add any GST-exempt or zero-rated fringe benefits.