Updates to rates for UOMI and FBT on low-interest loans

Two Orders in Council have been made updating the rates for use of money interest and the rate for calculating fringe benefit tax on employer-provided, low interest loans.

The new underpayment rate for use of money interest is 10.91% (previously 10.39%). The new overpayment rate is 4.67% (previously 3.53%). These will apply on and after 29 August 2023.

The new prescribed rate of 8.41% (previously 7.89%) for calculating fringe benefit tax on employer-provided loans applies for the quarter beginning 1 October 2023 and subsequent quarters.

Inland Revenue has published special reports detailing the changes ahead of coverage in an upcoming edition of the Tax Information Bulletin.

Special reports on update to rates for UOMI and FBT on low-interest loans