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. 

There are four main categories of benefits:-

v  Motor vehicles;

v  Low-interest loans other than low-interest loans provided by life insurance companies;

v  Free, subsidised or discounted goods or services, including subsidised transport for employers in the public transport business;

v  Employer contributions to sick, accident or death benefit funds, superannuation schemes and specified insurance policies.  The Kiwi Saver scheme is not included in this category.

You may also be liable to pay FBT if you pay for your employees:- 

v  Entertainment; and/or

v  Private Telecommunications use;

Click on each category if you would like more information from Inland Revenue Department on how to calculate the FBT.

Gifts, prizes and other goods may also be considered liable for FBT.  If you wish to know more, please give us a call or visit the IRD website.


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