Tax Facts - Fringe Benefit Tax
Fringe Benefit Tax (FBT) is a tax on benefits that employees
receive as a result of their employment, including those benefits
provided through someone other than an employer.
The four main groups of fringe benefits are:
- Motor vehicles (refer to the IRD website for
more information on how to calculate)
- Low-interest loans other than low-interest
loans provided by life insurance companies
- Free, subsidised or discounted goods and services, including subsidised
transport for employers in the public transport business
- Employer contributions to sick, accident or
death benefit funds, superannuation schemes and specified insurance
policies
Gifts, prizes and other goods are fringe benefits. If you pay
for your employees' entertainment or private telecommunications use, these benefits
may also be liable for fringe benefit tax.
Fringe Benefit Tax is payable quarterly (however some employers may
be able to elect payments filing on an annual basis).
Refer to the IRD website for more information on how fringe
benefit tax is applied and calculated on:
If you would like further information on whether FBT is payable
and how this is calculated just give us a call.
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