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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For more information on whether FBT is payable and how it is calculated please call us on 09 373 4544 or visit https://www.ird.govt.nz/employing-staff/paying-staff/fringe-benefit-tax
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