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Fringe benefit tax (FBT)
Te take utu hemihemi

Low-interest loans

Rules have changed for employers who are, like banks or financial institutions, lending money to members of the public. Those employers can now choose to value low interest loans provided to employees using either the prescribed rate or alternatively a market rate. Certain criteria apply to what constitutes a market rate. For all other employers the value of the loans must continue to be calculated using the prescribed rates issued by Inland Revenue quarterly.

Prescribed interest rates - 2007 to 2012

The FBT prescribed interest rates for the years 2007 to 2012 that are used to determine the fringe benefit value of low-interest loans provided to employees.

Prescribed interest rates

These are the FBT prescribed interest rates, which are used to determine the fringe benefit value of low-interest loans provided to employees.

Prescribed interest rates - 2000 to 2006

The FBT prescribed interest rates for the years 2000 to 2006 that are used to determine the fringe benefit value of low-interest loans provided to employees.

Liable low-interest loans

Learn about the FBT liability for current account debit balances, expense accounts, and loans to life insurance policyholders.

Prescribed interest rates - 1993 to 1999

The FBT prescribed interest rates for the years 1993 to 1999 that are used to determine the fringe benefit value of low-interest loans provided to employees.

Exempt low-interest loans

A low-interest loan to employees may not be subject to fringe benefit tax if the loan credit is the same as normal commercial credit or if it is an employee share-purchase scheme. Learn about these circumstances.

Record keeping for low-interest loans

In most cases, your existing records will provide enough information to work out the value of low-interest loans for FBT purposes. See if you need to keep any extra records regarding accrued interest, the daily balance of the loans, and non-reviewable interest rates.

FBT applied to low-interest loans

FBT is calculated on loans by comparing the interest on the loan with the interest calculated using the prescribed rate.

 

 


Date published: 14 Oct 2004

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