What is Fringe Benefit Tax?
Fringe Benefit Tax (FBT) is a tax on the benefits which employees may receive as a result of their employment.
This includes benefits which are provided by somebody other than the employer.
Do I need to pay FBT?
If you are an employer you’ll need to pay Fringe Benefit Tax on all benefits given to your employees which are additional to their salary or wages.
Which benefits are liable for FBT?
You are liable to pay Fringe Benefit Tax on most benefits you give your employees over and above their salary or wages, however the following are the categories which most commonly incur FBT. (Click for more information from the IRD)
- Motor vehicles
- Low interest loans
- Subsidised/discounted goods & services
- Employer contributions
- Private Telecommunications
Need more information?
Contact us and we’ll be happy to discuss Fringe Benefit Tax with you further.
You can also check out the Fringe Benefit Tax section of the IRD website for more detailed information.