Fringe Benefits Tax
) within the system of taxation in New Zealand
is the tax applied to most, although not all, fringe benefits
"), including the ones provided through someone other than an employer. FBT is paid to Inland Revenue
by the employer and is calculated with reference to the taxable value of the benefit provided to the employee
Legistation governing what a fringe benefit is, and is not, is contained within part CX of the Income tax Act 2007.
The categories of benefits include motor vehicles, low-interest loans, free, subsidised or discounted goods and services, employer contributions to funds, insurance
schemes and other benefits.
FBT filing may be quarterly, finance year, or annual tax return
. Taxpayers must pay quarterly unless they qualify for, and have elected to, use another period for filing.
Since 1 April 2001, FBT has been payable using one of two options. The Single Rate Option (whereby FBT is paid at the highest FBT rate on all employees), or the Alternate Rate Option (formerly called the Multi Rate Option, which involves attribution of benefits to individual employees and pooling of non-attributable benefits and certain de minimis benefits). There is a 'short form' way of calculating under the alternate rate option, which is simply to pool... Read More