Tax – Fringe Benefit Tax

What is Fringe Benefit Tax (FBT)?

  • Employees are taxed on benefits that they receive as a result of their employment.

The 4 main groups of Fringe Benefit Tax:

  • Motor Vehicles.
  • Low-interest loans.
  • Goods and services that are either free, subsidised or discounted.
  • Employer contributions ie sick, accident or death benefit funds, superannuation schemes and specific insurance policies.

Are there other Fringe Benefits that may also be taxable?

  • Gifts, prizes and other goods may also fall into FBT – private entertainment or telecommunications paid for by the employer may be liable.

When is Fringe Benefit Tax paid?

  • It is usually paid quarterly.
  • Some employers may be able to elect to pay on an annual basis.

How is Fringe Benefit Tax applied?

  • Please refer to the IRD website for calculations.
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