Fringe benefit tax on specific categories of benefits: Other benefits
Here we cover other benefits employers may provide to employees that are subject to fringe benefit tax under certain conditions:
- expenses for entertainment provided to employees, outside their normal employment duties
- payment for employees' private use of telecommunications, for example, telephone, fax or internet connection in an employee's home, or cellphone or pager costs.
Limitation to charitable organisations' exemption
When a charitable organisation provides a benefit to an employee by way of a short-term charge facility, FBT is payable if the value of the facility exceeds 5% of the employee's salary or wages in a tax year. A short-term charge facility is an arrangment that enables an employee to obtain goods and services that have no connection to the charitable organisation or its operations and where the liability for payment for part or all of the amount rests with the organisation.
For more information, please call us on freephone 0800 377 772.
Date published: 30 Mar 2006
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