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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 rules relating to FBT payments change on a regular basis. At CooperAitken, we keep up to date with the world of tax and are able to give accurate advice on the preparation of FBT returns.

We are also able to advise on the FBT consequences of proposals you intend to make, allowing you to make fully informed decisions.

Rather than paying excessive amounts of FBT, let the experts answer your tax queries. We can assist with the development and administration of a cost-effective employee benefit plan.

Benefits / Make Better Decisions

The four main groups of fringe benefits are:

Refer to the IRD website for more information on how fringe benefit tax is applied and calculated on:

  • 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.

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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