Menu

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 club memberships, 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.

If you would like further information on whether FBT is payable in your situation and how this is calculated just give us a call.

Supplied by CCH Business Fitness NZ

Client Login

Secure Client Login

This is where our clients can log into their own personalised secure area to access documents, files, accounting data, and financial reports.

Login now

Newsletters

Newsletter Subscription

Subscribe to our regular online newsletters which include the latest company news and helpful accounting tips and information.

Subscribe now

Tools and Resources

Tools & Resources

We offer a range of free and easy to use online resources ranging from key financial dates and tax facts to calculators.

View Resources

Software Solutions

Software Solutions

Let us help you make the right choice of accounting software to ensure you have the best accounting solution for your business.

View Solutions