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.

Supplied by CCH Business Fitness NZ

Dunedin Office
Level 5
229 Moray Place
Dunedin 9016
Ph: 03 477 5005
Fax: 03 477 5447

Oamaru Office
27A Coquet Street
Oamaru 9400
Ph: 03 434 8519
Fax: 03 477 5447

  Find us on the map

  Send an enquiry

Latest News

Copyright Harvie Green Wyatt  | Websites for accountants by CCH