FBTnews - 2009
Issue 25 March 2009
In this issue we look at new FBT rates, electronic filing, payments and refunds, completing the fourth quarter return, FBT and large employers, and cessation and the final return.
- FBT prescribed rate on low-interest loans
- FBT rates are changing from 1 April
- Help us use less paper
- Due date for filing and paying your fourth quarter or annual return
- Completing your FBT return for the period ended 31 March 2009
- FBT and large employers
- Liable for FBT, but you’re not receiving your quarterly returns?
- Cessation and your final return
Final issue of FBT news
Dear readers: This is the last issue of FBTnews. If we have any FBT changes we need to tell you about we’ll include them in our Payroll News newsletter. You can subscribe to Payroll News online.
If you have an FBT topic you’d like to see covered please email us at payroll.news@ird.govt.nz and we’ll aim to cover it in a future edition.
FBT prescribed rate on low-interest loans
The rate for calculating FBT on low-interest, employment-related loans for the quarter 1 January to 31 March 2009 is 10.90%.
The rate updated on our website (10.57%) for the quarter ended December 2008 was incorrect. This was quickly spotted and the correct rate of 10.90% has now been updated on our website. We apologise for any inconvenience.
FBT rates are changing from 1 April
From 1 April 2009 personal income tax rates will change and this has flow-on effects on the FBT rates.
Currently, you have the option of applying the multi-rate tax rate or using a flat rate of 64%.
From 1 April 2009 the flat rate changes from 64% to 61% and from 1 April 2010 the flat rate changes from 61% to 59%.
If you're using the multi-rate option there's no change to the 49% tax rate for quarters 1 to 3.
The following multi-rate fringe benefit rates will apply from 1 April 2009:
| Income range | Tax rate |
|---|---|
| $0 - $12,250 | 0.1429 |
| $12,251 - $39,110 | 0.2658 |
| $39,111 - $53,850 | 0.4925 |
| $53,851 and above | 0.6129 |
Help us use less paper
One of the business practices we're targeting for improvement is printing. A key focus is reducing the amount of paper and consumables (eg commercial printing ink) we use by introducing more online services, and encouraging our customers and suppliers to do business with us electronically.
You can help by filing your returns, making your payment or receiving your refund electronically.
Internet filing
You can file your FBT return online - go to Get it done online, and read our FBT guide (IR409) - go to Forms and guides. Have these details in front of you when you submit your FBT return:
- your return or letter confirming your IRD and DLN numbers, and
- your FBT records.
Electronic payments
Electronic payments, for example automatic payment, direct credit and online banking, are a common way of paying us. Most banks offer an online tax payment service on their website which ensures the correct payment reference details are included with your payment.
Particulars
999888656 (IRD number). Starting from the left, with no dashes, spaces etc. The remaining boxes are left empty.
Payee code
FBT 30092009. The first three boxes have the code for the correct tax type. Leave the next box blank, then enter the period end date this payment is for, not the date you're making the payment. This must show the day, month and all four digits of the year.
Each bank has a different cut-off time for processing payments. Your bank will carry over a payment made after this time and process it the following business day. So, please check your bank's cut-off time to ensure your payment will be processed on time. Most banks let you postdate your payment so you can set it up in advance for processing on a future date.
Due date for filing and paying your fourth quarter or annual return
31 May 2009 is the due date for filing and paying both the fourth quarter and annual returns for the year ended 31 March 2009. Because 31 May falls on a Sunday and 1 June is the Queen's birthday holiday, they will be treated as received in time provided you have the return and payment to us by 2 June.
Completing your FBT return for the period ended 31 March 2009
When completing your fourth quarterly Fringe benefit tax quarterly return (IR 420) please complete section C, not section B as you doin all other quarters. Section C tells us the FBT rate option you'reusing overall for the year ended March 2009.
The options available are:
- If you've paid FBT at 64% in the three previous quarters you can use the 64% or the multi-rate in quarter four.
- If you've paid FBT at 49% in any of the previous three quarters, you must use the multi-rate in quarter four.
If you're filing a Fringe benefit tax annual return (IR 422), you can choose to use either the 64% rate or apply one of the multi-rate calculations.
FBT and large employers
If you're a large employer, you must account for FBT quarterly, using the Fringe benefit tax quarterly return (IR 420). You don't qualify for the Fringe benefit tax income year return (IR 421) or Fringe benefit tax annual return (IR 422).
Your returns, with any payments, are due on:
| Return | Due date |
|---|---|
| March | 31 May (gives you time to do any multi-rate calculations) |
| June | 20 July |
| September | 20 October |
| December | 20 January |
Liable for FBT, but you're not receiving your quarterly returns?
Large enterprise employers please call your account manager or 0800 443 773 and we'll update our records. Other employers please call 0800 443 553.
Cessation and your final return
When you no longer have an FBT liability and you cease your account with us, you have two months from the end of the quarter this falls in to file and pay the final return.
For example, your FBT liability ceases at 20 April 2009 (during the June 2009 quarter). So, your June return is due 31 August 2009 and not by the normal date of 20 July 2009.
If this situation applies to you and you find we've charged interest and late payment penalties from the normal due date, please call us on 0800 377 772 so we can correct it.
Alan Quinn
Manager
Customer Insight
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Date published: 24 Feb 2009
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