i) Royalty income
- Royalty income for resident individuals is taxed in two stages;
- First a withholding tax of 5% of the gross royalty income is imposed
- Then gross royalty less allowable expenses is added to other incomes of a taxpayer and taxed, and a relief of withholding tax earlier deducted is set off against tax computed.
ii) Loan from an employer
- Up to 11 June 1998, low interest benefit was taxed on the employee at the difference between the interest rate charged and prescribed commissioner‘s rate.
- With effect from 12 June 1998, loans at a rate below the 91 Day Treasury bill rate, (below market interest rate) will attract a fringe benefit tax payable by the employer at the corporate tax rate of 30%.
Wilfykil answered the question on February 13, 2019 at 08:39
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