Fringe benefit tax on specific categories of benefits: Other benefits
FBT - liable entertainment expenses
As a general rule, any entertainment benefit that employees consume or enjoy when they choose, and that is outside their employment duties, is subject to fringe benefit tax.
Therefore you are liable for fringe benefit tax on:
- membership subscriptions relating to entertainment
- in-house benefits that come under the definition of entertainment.
If employees can only enjoy entertainment at a set time, or as part of their employment duties, the cost is not subject to fringe benefit tax but comes under the rules for entertainment expenses. Examples are staff Christmas parties and subsidised drinks for staff at work.
Benefits provided on the premises, has been extended to include not only the premises in which the employee works but also a company that is in the same group of companies. Companies deemed to be in the same group must have a 66% or greater common ownership with the employer company.
Date published: 14 Oct 2004
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